• 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. 

 

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