Shiba Inu (SHIB)'s market cap is rapidly approaching that of Dogecoin (DOGE), with the former currently at around $20.5 billion, just 17% less than Dogecoin's $24.1 billion market cap.
Traders are optimistic about Shiba Inu's potential
Over the past week, meme cryptocurrencies have experienced significant appreciation. Shiba Inu, often hailed as the so-called “Dogecoin killer,” has moved up several spots in the top 100 rankings and sits just below rival DOGE.
In the past 7 days, Shiba Inu prices have increased by 62%, and in the last month they have seen a 280% increase. In contrast, Dogecoin experienced a 19% price increase in the last week and a 109% price surge over the past month.
On October 29, 2021, Shiba Inu saw a remarkable rise, reaching more than 10 times its previous value at its peak, with a market capitalization of $41 billion.
Despite a significant decrease in market capitalization to $5.97 billion as of December 8, 2023, Shiba Inu continues to maintain its top 10 position among meme cryptocurrencies by this metric, surpassing Dogecoin. It has become the next best thing.
In January 2023, the leadership of the Shiba Inu community announced Shibarium, a layer 2 blockchain intended to run on top of Ethereum. Its objectives include reducing congestion, integrating staking into the ecosystem, reducing gas fees, and establishing a framework for decentralized applications and the expansion of Web 3.
According to CoinGecko data, Shiba Inu (SHIB) is trading at $0.00003472 and ranks 11th in the global cryptocurrency market.
Meanwhile, Dogecoin's price is $0.168 and the 24-hour trading volume is $3.2 billion.
Over the past year, Dogecoin has consistently traded within a narrow range of $0.08 to $0.10, indicating a period of little volatility.
Meanwhile, on February 6, data analytics platform Santiment reported that Dogecoin wallets have experienced unprecedented growth, with 413,800 new wallets added in just two weeks, most within the 0.001 to 1 DOGE range. It was revealed that there was.
Market sentiment indicates a possible retest of the $0.20 resistance level or a fallback to the $0.12 support level based on buyer behavior.
Part of the excitement surrounding Dogecoin can be credited to Elon Musk. Tesla CEO and X owner commented on the coin in a tweet, causing the price to skyrocket and public awareness to increase.
In addition to social media support, Musk has expressed interest in funding Dogecoin's development since 2019 in order to improve its features and establish it as a prominent crypto asset.
But Musk's involvement was not without controversy. In 2022, he faced a $258 billion lawsuit for allegedly manipulating Dogecoin's price through his social media presence and public statements.
Dogecoin's price movements mirror patterns seen in past bull markets and suggest future growth opportunities.
Despite variations in short-term forecasts, analysts like Ali Martinez remain optimistic about Dogecoin’s potential for significant upside, with predictions reaching as high as $1.70 or more.
A new horizon for Bitcoin
The current meme coin hype reflects a renewed interest in community-driven narratives and decentralization within the crypto space.
The emergence of meme coins spread to the Bitcoin blockchain through the BRC-20 token standard, leading to higher network fees due to increased trading activity.
Introduced in March 2022, the BRC-20 token standard has seen significant growth, with a market capitalization of $120 million and over 8,500 tokens created.
Unlike Ethereum's ERC-20, BRC-20 tokens function without smart contracts and instead utilize the Ordinals protocol on the Bitcoin blockchain for token issuance and trading.
The surge in BRC-20 transactions has resulted in a noticeable increase in transaction fees, resulting in more revenue for miners and impacting network congestion on both Bitcoin (BTC) and Ethereum (ETH) blockchains. Masu.
While the proliferation of memecoins on the Bitcoin blockchain represents innovation in the cryptocurrency space, it also highlights the challenges posed by transaction fees and network burdens amid the memecoin frenzy.
