A widespread selloff in cryptocurrencies has been observed from the last few days.
Most of the meme tokens, especially Shiba Inu (SHIB) and Dogecoin (DOGE), which have posted enormous returns in 2021, attracting the investment community, lost their bullish momentum and started running towards the south, as meme assets are considered the riskiest ones and current risk-averse attitudes pushed investors away from them.
SHIB and DOGE have recorded double-digit losses over the last week, i.e., 37.65% and 32.57%, respectively, as Bitcoin (BTC) and Ethereum (ETH) failed to defend their critical support levels and slid below it.
Shiba Inu token price is now down almost -78.12% from its all-time high (ATH) price of $0.00008845, recorded three months ago on October 28, 2021. Whereas, Dogecoin’s price slid more than 82% from its all-time high price of $0.7376, recorded eight months ago on May 08, 2021, following prominent supporter and Tesla CEO Elon Musk’s appearance on “Saturday Night Live.”
The fall in prices of the meme-coins is not over yet, as we can observe a sharp increase in 24-hours trading volume on Saturday. DOGE’s 24-hours volume surged 67.35% to $1,731,422,793.46 compared to the previous trading session, whereas SHIB’s 24-hour volume increased 82.68% to $2,026,740,590.71. This sharp increase in volume along with a sharp fall in prices suggests that the selling’s interest is still there in the market, and prices may go down further.
Despite growing merchant adoption and significant new developments, the meme-coins have struggled to revive bullish momentum.
There is news that both of the top meme-coins will soon be accepted by AMC Theatres for ticket purchase this year. E-car manufacturer company Tesla has already announced the acceptance of Dogecoin for buying some merchandise.
Shiba Inu (SHIB) may launch its Shibarium blockchain and its Multiplayer NFT Collectible Card Game soon but nothing is helping price along with daily burning.
Mike McGlone, Bloomberg Intelligence Commodity Strategist, doesn’t like meme-coins, and he wants the market to be cleaned from these silly coins. He thinks only in this way a dollar inflow will take place in Bitcoin, Ethereum, as well as dollar-pegged stablecoins, and they could continue transforming the world’s financial system.
“The dog coins were good examples of the speculative excesses in the space, and the sooner the market is cleansed of this silliness, the more likely the three Musketeers — Bitcoin, Ether, and the proliferation of crypto dollars — will resume transmogrifying the global financial system.”