A token made to resemble the Shiba Inu dog breed may see an imminent sell-off after continuing to outperform the broader cryptocurrency market for several days.
On Monday, Twitter, the social media company owned by billionaire and cryptocurrency advocate Elon Musk, replaced its popular blue bird logo with Dogecoin’s Shiba Inu mascot. The price of Dogecoin (DOGE) surged almost immediately as its futures market set a record betting on the increased use of Dogecoin on Twitter’s platform.
Due to its rise, several other Shiba Inu-themed Meme coin with multifold jump, the sector is up 14% on average. Large market cap tokens such as Shiba Inu (SHIB) surged up to 10%, while smaller market cap coins such as FLOKI, KISHU and BABYDOGE surged as much as 25%.
The new blockchain memecoin has had its moment too. Dog-themed tokens such as zkDoge and zkShib on the zkSync blockchain launched in March posted 100% returns.
However, some traders warn that such moves do not indicate a broader trend, so it is unlikely that such price spikes will continue in the long term.
“I don’t think this is an indication of a long-term bull market. Quite the opposite,” Guillem Chaumont, CEO of crypto trading firm Flowdesk, said in a Telegram message. , Bitcoin goes through a bull market, then the major altcoins rise, and finally the smaller market cap tokens.
“Memecoin’s rise marks a third phase, the end of the cycle, as bitcoin is on a relatively stable upward trend. No,” said Chaumont.
This is a sentiment shared by Bonnie Cheung, head of strategy at crypto developer Sending Labs. “Feelings about memecoins are nothing new, which means growth is likely to slow as usual in a few days,” she said.
These tokens have the potential for long-term growth if their basic functionality is enhanced in the coming months.
“Shiba Inu, for example, is gaining more attention through the launch of Sibarium, a layer 2 protocol built on the Ethereum blockchain. It could help us record sustained growth over time,” said Cheung.
On the other hand, some say Twitter’s move could pave the way for mainstream crypto adoption.
“Mr. Musk’s supportive tweets and recent decision to add the Dogecoin logo to Twitter help keep both DOGE and SHIB in the public conversation,” says blockchain network Komodo’s top tech. Head Kadan Stadelmann said in an email to CoinDesk.
“Whether or not they support memecoins, there is no denying that Musk is driving mainstream adoption of cryptocurrencies and gaining media attention. This is certainly a net positive for the crypto space as a whole,” Stadelmann said. added Mr.
