It's dog coin season as DOGE, SHIB, FLOKI, and SAMO skyrocket
- 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.
Shiba's success tells you three things:
— Alex Krüger (@krugermacro) October 27, 2021
#1 everything is possible with hard work and perseverance
#2 people loves dogs & memes
#3 money will chase anything that moves (this applies to both dumb and smart money)
Dylan LeClair, co-founder of 21stParadigm, has criticized traders aping into dog coin rallies and shared his concerns in a recent tweet:
“something something stupid maxi”
— Dylan LeClair (@DylanLeClair_) October 27, 2021
Guys, I sincerely have no problem with you buying shitcoins. Seriously, have it.
You know what I do care about? When a friend or family member with no savings or assets wants to “YOLO” into dog tokens, because they saw an ad on Snapchat. ♂️♂️
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.
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.
THE $BTC TOP FOR THE YEAR IS IN
— LilMoonLambo (@LilMoonLambo) October 27, 2021
DUMP IT ALL AND ENJOY THE REST OF 2021
THE BULL RUN IS OVER
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
