DTCC’s anticipation of BlackRock’s forthcoming bitcoin spot ETF has fuelled the cryptocurrency market’s rally over the past week, with Dogecoin (DOGE) and Shiba Inu (SHIB) memecoins also doing well.
However, despite charting in the green, the two cryptos underperformed both bitcoin and many other cryptocurrencies, suggesting that traders are looking for more attractive buying opportunities and may have sidelined the two quintessential speculative assets of the market.
Several tokens have seen gains of more than 100 per cent in the last week of trading, while the two crypto moons have risen ‘only’ 20 per cent.
Where do the whales stand? Find out in this article.
The underperforming growth of crypto Dogecoin (DOGE) and Shiba Inu (SHIB) after bitcoin’s rally
Over the past 24 hours, popular crypto memes Dogecoin (DOGE) and Shiba Inu (SHIB) have risen 8.6% and 8.2% respectively, rekindling shitcoiners’ hopes that the two coins will return to their all-time highs.
Despite last week’s gains, boosted by bitcoin’s rally on rumours of imminent approval of Blackrock’s iShares Spot ETF following its listing with the DTCC, DOGE and SHIB fell short of traders’ expectations.
With the market up $190 billion in seven days, the two currencies underperformed much of the sector, suggesting that speculators have moved on.
For DOGE, prices rose 22.75 percent from $0.058 to $0.071, partly as a result of the community’s amazement after Elon Musk revealed that he had introduced video calling for premium users of the X platform.
Supporters of the historic meme-based cryptocurrency believed that Musk intended to implement the DOGE payment option for the new feature, but this was not the case.
Dogecoin has often been touted by the Tesla founder, sparking several booms in the currency and even getting him into legal trouble by being sued several times for market manipulation.
In April, Musk changed the Twitter bird logo by temporarily inserting the Dogecoin logo in order to boost the popularity of his favourite cryptocurrency.
Users are now expecting some kind of integration of the currency on the social platform: if this does not happen, DOGE could lose its hegemony on the market, despite the positive growth it has recorded in the short term.
On the Shiba Inu (SHIB) front, performance has also been disappointing and not in line with other riskier investment solutions that have seen more significant gains since the crypto market’s recent bull run.
Extremely volatile currencies such as SHIB, which suffered a 90% drop from its highs in the middle of the bear market, were expected to come roaring back as the bull market approached.
Many whales have turned to alternative tokens, leaving aside the meme-like euphoria that characterised the entire month of May this year, when PEPE went from virtually nothing to 1 billion market cap in a matter of days.
SHIB, while doing well, has risen relatively little over the past week, with an 18.7% increase taking the asset price from $0.0000069 to the current $0.0000079.
The best performing cryptos in the market last week
As expected, many cryptos have seen much larger price increases than Dogecoin (DOGE) and Shiba Inu (SHIB) over the past seven days.
Looking at Coinmarketcap’s rankings, the coin that stands out the most for its recent performance in the markets is SOL, which is significantly more capitalised than the two memecoins, but has seen a 34% increase in the last week of trading.
LINK, which is less capitalised than DOGE but larger than SHIB, has also caught the attention of traders with a +49% rise that has seen it cross the $10 threshold and overtake the likes of MATIC, POLKADOT and LITECOIN in the rankings.
The underperformance of Dogecoin and Shiba Inu is not only seen in the top coins of the crypto market, but also in more speculative options that are closer and comparable to the first two.
For example, ORDI, the BRC-20 token of the Ordinals protocol, posted an excellent +54% during bitcoin’s rally.
Over the same period, HEX, POWR and TRB all made waves with excellent performances of 150%, 129% and 88.3% respectively.
Taking a closer look at the Memecoin sector, we can once again see that traders’ choices have been directed to other fronts than the traditional DOGE and SHIB: in the last 7 days, ELON, which takes the name of X’s patron, has risen by +46.8%, FLOKI by 72.1% and PEPE by an incredible 95.3%.
Comparing the two cryptos to their cousins, Memecoin, we see a loss of dominance in favour of the less popular ones.
It seems that investors have shifted their focus to alternative, younger and easier to manipulate options.
When a cryptocurrency becomes too difficult to manipulate, it becomes difficult to make triple-digit percentage gains in a short period of time, so during strong market rallies, traders choose to position themselves where there is more room for growth.
It will now be crucial to watch the next performance of Dogecoin and Shiba Inu to see if the current situation is an isolated case or if we are at the beginning of a phase where the two most famous crypto dogs in the crypto world will be displaced.