Meme coins have become a popular form of cryptocurrency, with many well-known public figures backing them. Last week, meme coins like Shiba Inu (SHIB) and Dogecoin (DOGE) were among the most talked about projects in the cryptocurrency market. According to a report by LunarCrush, DOGE was the fifth most mentioned cryptocurrency on social media. More than 300,000 words were written about DOGE and it received nearly 900,000 interactions. SHIB, the dog-themed cryptocurrency, was ranked as the sixth most popular crypto in terms of social interactions last week.
Do meme coins like SHIB and DOGE have a future?
The combined market cap of all meme coins is around $15 billion and Dogecoin has a solid lead with almost half of the market. To understand whether meme coins have a future or not, we first need to know what has driven them so far. It was noteworthy that DOGE, the largest dog-themed meme coin by market cap, was the worst performing cryptocurrency compared to other meme coins in price performance last week. It performed excellently with an increase of 21.96, but the 24-hour trading volume of $1,164 for EDOGE is extremely small and right now a cryptocurrency whale could easily crash the price.
By their very nature, meme coins rely on speculation to boost their price. That’s why most meme coins are focused on Elon Musk’s Twitter account. This is also why they are considered very risky assets. They rely on other traders to enter or exit the market due to social media stimulation. Despite the speculation surrounding various aspects of cryptocurrencies, the tokenomics of popular meme coins is not good. For example, DOGE has an endless supply of tokens, while SHIB is a highly centralized organization that relies on its team to burn its massive supply.
Shiba Inu management not selling
The Shiba Inu (SHIB) surge from the low of $0.0000080 to the high of $0.000010 is a real indication that the SHIB is seeing strong demand. This remained the case even after hitting rock bottom in June. The number of whale transactions has increased over the past few days. However, it is not consistent with the large sales observed in the market. The supply of various classes of whales is also increasing. The fact that more than 10 million Shiba Inu coin addresses have not changed in the last 30 days indicates that the Shiba Inu administration is not selling. Despite the increasing number of whales, the buying pressure is not strong enough to push the market up. This movement is due to the fact that the data represents only a small part of the total transactions.
Despite this, whale activity is still a positive sign that the company is seeing strong demand. The increased number of investors has led to more positions in Shiba Inu. The cryptocurrency price is expected to rise from its current price to the next level of resistance at $0.000112. According to his predictions, the Shiba Inu will reach an all-time high of $0.000008845 by the end of the year. Meanwhile, the debate over the development of meme coins remains very interesting. The public’s interest in these coins is quite clear. It will be interesting to see how meme coin projects will perform in the future.
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