In March, the cryptocurrency market witnessed a surge in the popularity of meme coins, such as Shiba Inu (SHIB) and Dogecoin (DOGE).
Initially driven by enthusiastic online communities and viral social media trends, these coins and tokens now seek to establish themselves within a more mature cryptocurrency ecosystem.
Several forthcoming events within the broader market have the potential to generate favorable conditions for the aforementioned meme coins.
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Favorable market winds for meme coins
The upcoming Bitcoin (BTC) halving, has historically coincided with price increases for Bitcoin and often exerts a significant influence on the entire cryptocurrency sphere. A potential period of bullish sentiment could translate into benefits for meme coins like SHIB and DOGE.
Additionally, regulatory approval for a US-based Ethereum (ETH) spot ETF could attract institutional investors to the broader cryptocurrency market.
This influx of capital could positively impact the valuation of meme coins, as their lower entry points compared to established cryptocurrencies may make them more attractive to these new participants.
Challenges to growth
However, achieving a market capitalization of $25 billion by the end of 2024 remains a considerable challenge for both coins and tokens.
The inherent volatility of the cryptocurrency market continues to represent a significant obstacle. Unforeseen market variations could disrupt the price stability of these coins and limit their market cap growth.
Shiba Inu (SHIB)
Shiba Inu boasts a current market capitalization of $13.56 billion. This represents a notable decrease from its October 2021 all-time high of $43.51 billion.
The continued development of Shibarium, the layer 2 blockchain network for SHIB, has the potential to improve transaction speeds and reduce fees. Enhanced functionality, coupled with a dedicated community of supporters, could contribute to SHIB’s future market cap growth.
Negative exchange netflow for SHIB in the past week suggests reduced selling pressure, indicating a potential shift in investor sentiment towards accumulation. The transition to self-custody methods is seen as bullish, reducing immediate selling pressure as holders opt for long-term storage solutions.
Shibarium’s progress and SHIB burn rate are notable milestones, with over 4 million total blocks on the network indicating active usage and adoption.
Furthermore, a significant increase in daily transactions has been observed, reflecting growing utility and demand for the token.
The SHIB burn rate surged by almost 50,000%, removing millions of tokens from circulation to make it scarcer, potentially increasing its value over time as supply decreases.
Adding to the bullish sentiment, the respected crypto analyst, CRYPTO SHERIFF, recently predicted a breakout for SHIB, potentially leading to a 350% price surge in the near future.
Dogecoin (DOGE)
Dogecoin currently holds a market capitalization of $23.2 billion, substantially lower than its May 2021 all-time high of $46.14 billion.
However, DOGE’s association with influential figures like Elon Musk continues to generate interest.
Additionally, wider adoption of Dogecoin as a payment method could significantly impact its price and market cap. Similar to SHIB, DOGE’s past performance suggests the possibility of reaching $25 billion in 2024.
Ultimately, their ability to establish real-world use cases will influence their long-term market cap potential. 2024 has so far been an interesting year for both SHIB and DOGE.
While both started with a slight price dip in January, they’ve seen significant recovery. As of April 15, SHIB boasts a year-to-date (YTD) increase of 116.55%, and DOGE sits at a respectable 74.14% increase.
With plenty of time left in the year, further developments and potential market shifts could see these meme coins continue their impressive performance.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
