SNEAK PEEK
- The recent days have seen meme coins outperforming in the crypto markets.
- Small-cap, large-cap and tokes on new blockchains have jumped in prices.
- Some crypto traders believe such rises to be temporary and fading in the long-term.
Tokens created after the Shiba Inu breed might witness immediate selling in the coming time, thanks to their phenomenal performance in the broader crypto market.
On Monday, Twitter replaced its renowned blue bird logo with the Shiba Inu mascot of Dogecoin. As was obvious, there was an instant hike in the price of DOGE, with some betting on the increased usage of Dogecoin on the Twitter platform.
Various other Shiba Inu-based meme coins jumped multiple times, and the sector spiked 14% on average. While large-cap tokens like SHIB spiked up to 10%, small-caps like FLOKI, BABYDOGE and KISHU jumped over 25%.
Besides these coins, meme coins based on newer blockchains had a great time too. For instance, despite going live recently in March, zkShib and zkDoge on the zkSync blockchain gained over 100%.
Such jumps do not last long, as per certain traders who warn that these moves are non-indicative in terms of a broader trend.
Guilhem Chaumont, CEO of Flowdesk, said that they do not believe that it points towards a long-term bull run. The crypto market uptrend has a regular pattern where Bitcoin undergoes a bull run followed by key altcoins pumping, and, lastly, tokens that have a small market capitalization.
Chaumont added that Bitcoin is experiencing a stable upward trend, and therefore, the rise of meme coins will hint at the third phase. However, there’s no need to over-interpret these momentary changes in price.
Head of strategy at Sending Labs, Bonnie Cheung, said that the sentiment for meme coins is now new, which means there is a possibility of the growth fading away as always in a few days.
These tokens may have long-term growth if their basic features grow stronger in the coming months.
Cheung noted that Shiba Inu is getting extra traction via Shibarium’s launch, its layer-2 protocol developed on the Ethereum blockchain. Both Dogecoin’s recognition by Twitter as well as the payment world are growing, and such trends can lead to even more sustained growth in the long term.
A testnet for Shibarium has experienced quick adoption. Projects such as Floki are developing games and DeFi tools to cut free from the “meme coin” tag.
Some suggest that Twitter’s action can pave the way for mainstream crypto adoption.
Kadan, the CTO of blockchain network Komodo, said that supportive tweets by Musk and the recent move to add the Dogecoin logo to Twitter will help keep both SHIB and DOGE in the public conversation.
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- Source: https://investorbites.com/crypto-traders-believe-hike-in-shiba-inu-based-meme-coins-is-unsustainable/
