Are DOGE, SHIB, and Meme Coins Dead? – Cryptokoin.com

With no bearish or bullish news feeds, Dogecoin (DOGE) and Shiba Inu (SHIB) struggled to keep up with the broader crypto market rally that occurred in January. Does DOGE and SHIB stop rallies mean the meme-coin trend is dead? Crypto expert Nivesh Rustgi seeks an answer to this question.

Google search volume for Dogecoin plummets as interest wanes

cryptocoin.comThe meme-coin phenomenon, which you follow from , was not effective in last month’s crypto market rally. Because the earnings of the top cryptocurrencies in this category have barely outstripped Bitcoin. BTC’s monthly gains were 44.5%, while DOGE and SHIB, the top two meme-based cryptocurrencies, were up 27% and 40.7%, respectively.

Biggest meme coins by total market cap / Source: CoinMarketCap

Dogecoin is losing popularity as its most prominent supporter, Elon Musk, is reportedly developing a standalone Twitter Coin rather than integrating his favorite cryptocurrency with the social media platform. For most of 2022, DOGE performed poorly, except when Elon Musk bought Twitter. The acquisition raises hopes for increased cryptocurrency usage in the Dogecoin community.

However, with no concrete announcements or reports of Dogecoin usage from Twitter, the 100% price increase in October reversed over the next two months. Google search volume for the token has also declined since the first quarter of 2022.

DOGE
Google trend score for ‘Dogecoin’ and ‘Shiba Inu’ / Source: Google Trends

Another factor affecting DOGE price last year was the launch of Dogechain. An EVM-compatible Blockchain using DOGE as a gas payment token. However, Dogechain has failed to attract users and has essentially become a place for ‘shitcoin’ trading. Currently less than 1% of DOGE is bridged on Dogechain.

Dogecoin (DOGE) needs a catalyst

Finally, on-chain data for Dogecoin shows that the price is excessive. The Network Value to Transaction Value (NVT) ratio metric is an equivalent price-to-earnings ratio for the cryptocurrency markets. The metric measures the ratio of the token’s market value to its trading volume. Higher trading volume by market cap corresponds to lower NVT data.

Coinmetrics’ historical NVT chart of Dogecoin shows that the token is overvalued. For the past eight years the NVT ratio has fluctuated between 10 and 100 with a few outliers during bull markets. Dogecoin’s NVT metric has not touched the bottom of its long-term range since mid-2021. This exposes it to more downside risk.

NVT rate for Dogecoin / Source: Coinmetrics

It looks like the internet’s first and most beloved meme-coin will require a catalyst like a tweet from Elon Musk or a drastic change in the fundamentals of the token to spark a positive trajectory in the short term.

DOGE daily price chart / Source: TradingView

Dogecoin has been trading between $0.05 and $0.14 since last June. A breakout from the range can bring continued momentum in the direction of the breakout.

Shiba Inu’s brand building strategy may not be enough

Like Dogecoin, the weakening meme-coin narrative has also affected the purchasing power of the Shiba Inu. The second largest meme-coin is working to increase the brand value of the Shiba Inu by forming partnerships with clothing brands such as the Bugatti Group and British designer John Richmond.

DOGE
Token balance on exchanges / Source: Nansen

On a weekly timeframe, the token is trading between $0.00000825 and $0.00001794. A breakout from this range will likely bring a strong move in the direction of the breakout. The mid-range $0.00001200 is also acting as a resistance for buyers.

DOGE
SHIB daily price chart / Source: TradingView

While the top meme tokens lost momentum, the BONK token by Floki Inu and Solana experienced impressive gains in January thanks to the SOL price increase and tokenomic improvement with Floki Inu. The Floki community voted to burn $100 million worth of FLOKI tokens on January 29, which nearly doubled its price.

Overall, the meme-coin phenomenon in 2021 appears to have lost its potency significantly. While Memecoins moved with the rest of the market, their performance was average. Improvements to projects by the team or community became necessary to push these tokens up again.

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