• Dog-themed cryptocurrencies break into a rally, proponents debate whether this implies an end to the ongoing Bitcoin bull run. 
  • Shiba Inu and Dogecoin are neck to neck in market capitalization. 
  • Both the Shiba-Inu-themed cryptocurrencies posted 28% and 22% daily gains, respectively. 
  • The crypto dogfight is on as capital is pulled out of Bitcoin and altcoins to rotate into dog coins SHIB, DOGE, FLOKI and SAMO. 

Cryptocurrency analysts note capital rotation from top cryptos to dog coins as the market gets overheated. The top three cryptocurrencies by market capitalization have suffered a drop in price as dog coins capture the attention of retail traders. 

Dog coins offer double-digit gains to traders as Bitcoin rally cools down

A recent study conducted across 22 countries by an Australian crypto survey agency revealed more Dogecoin holders in the US than Bitcoin and Ethereum. The survey results imply that Dogecoin's adoption among investors and traders in the US is nearly twice as much as the global average. 

The interest in dog-themed currencies and memecoins is not a recent one. Historically, when capital rotates out of mainstream cryptocurrencies with a large market capitalization (Bitcoin, Ethereum and top altcoins), it flows into memecoins and signals a cooling-off period for the ongoing bull run. 

Alex Kruger, cryptocurrency analyst and economist, commented on the recent success of SHIB, the Dogecoin-killer. 

Dylan LeClair, co-founder of 21stParadigm, has criticized traders aping into dog coin rallies and shared his concerns in a recent tweet:

The number of Shiba Inu holders surpassed 800,000 overnight. SHIB added 30,000 new holders within a single day with its massive rally. More investors have turned to dog coins, feeding the DOGE vs. SHIB rivalry that started with Shiba Inu's launch in August 2020. 

A mysterious address purchased $3,400 worth of SHIB (in exchange for wrapped Ethereum WETH) when the memecoin launched, and the holdings are worth over $1.55 billion. The wallet kept purchasing SHIB several times; the $3,400 purchase was the largest, and total wallet holdings are now worth $5.63 billion. 

It remains to be seen whether this whale decides to sell their holdings and whether the SHIB markets have enough liquidity to absorb a sale of this volume. 

Mysterious Shiba Inu wallet that purchased $3,400 worth of SHIB tokens in August 2020.

Mysterious Shiba Inu wallet that purchased $3,400 worth of SHIB tokens in August 2020. 

Less popular dog coins FLOKI and SAMO posted thriple-digit gains of 125% and 113% over the past 24 hours, respectively. 

Pseudonymous cryptocurrency analyst and trader @LilMoonLambo has predicted that the BTC top for the year is in. The analyst considers a dog coin rally an indication of the ending Bitcoin bull run. 

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Ripple price shows signs of weakness

Ripple price shows signs of weakness

Ripple price stabilizes around $0.530 and trades within a tight range for the fourth day in a row on Tuesday. After breaking below its ascending trendline last week, XRP’s price was rejected from its daily resistance level on Monday. 

More Ripple News
Aptos price is poised for a rally following a retest of the support level

Aptos price is poised for a rally following a retest of the support level

Aptos price extends its gains on Tuesday following last week's retest of its key support zone. On-chain data further support APT’s bullish outlook, as its open interest is rising and long-to-short ratio trades are above one, all hinting at a rally in the upcoming days.

More Aptos News
Trump-related meme coins rally following high Polymarket odds and endorsement from Elon Musk

Trump-related meme coins rally following high Polymarket odds and endorsement from Elon Musk

Polymarket data on Monday revealed that Donald Trump's odds over Kamala Harris in the presidential race surged to 54%, establishing an 8% lead for the Republican candidate. Following the lead, Trump-based meme coins saw double-digit gains.

More Cryptocurrencies News
Ethereum proposal to boost transaction speed and help DEXs save $100M sparks enthusiasm in community

Ethereum proposal to boost transaction speed and help DEXs save $100M sparks enthusiasm in community

Ethereum will see a 50% speed increase and improved DEX efficiency if new proposal is approved. EIP-7781 is already getting support from key members within the Ethereum community.

More Ethereum News
Bitcoin: Is BTC sell-off over?

Bitcoin: Is BTC sell-off over?

Bitcoin price declined over 6% this week until Friday as the escalation of the conflict between Iran and Israel added fuel to this sell-off. The decline was also supported by falling institutional demand for ETFs. BTC bulls seem to be holding strong at a critical support level.

Read full analysis
Five best Forex brokers in 2024

Five best Forex brokers in 2024

VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals. 

Read More

BTC

ETH

XRP