Almost all the prominent memecoins including Dogecoin, Shiba Inu and Dogelon Mars witnessed sharp price declines last week owing to a widespread selloff in the entire crypto market
The crypto market saw yet another bloodbath last week, taking down almost all the noteworthy memecoins with it. Some of these speculative tokens that lost significant ground include Dogecoin (DOGE), Shiba Inu (SHIB) and Dogelon Mars (ELON).
It’s worth noting that these Shiba Inu dog-inspired coins are popularised mainly by online hype, and don’t have many relevant use cases in the real world. According to the data gathered from CoinMarketCap, Dogelon Mars was the biggest loser with a 40% drop, while Dogecoin and Shiba Inu fell as much as 22% and 32% respectively.
Named after billionaire tech entrepreneur Elon Musk and Dogecoin, Dogelon Mars is now down 97.5% from its all-time high (ATH) price recorded on July 31, 2021. Its peers haven’t fared much better either, with DOGE and SHIB down 81% and 75.6% from their respective ATHs.
Although Baby Doge Coin (BabyDoge) also fell by over 30% from its price point 7 days ago, it has maintained an overall bullish uptrend over the last month.
BabyDoge/USDT Daily Chart. Source: TradingView
Almost all popular altcoins like Binance Coin (BNB), Cardano (ADA), Ethereum (ETH), Solana (SOL), Terra (LUNA), Polkadot (DOT) and Avalanche (AVAX) were in the red this past week. Bitcoin (BTC), the gold standard of the crypto world was trading at $35,185 as of writing, down 48.6% from its ATH of $68,789 registered in Nov 2021.
The recent crypto market slump is being attributed to multiple fundamental factors. The regulators in Singapore, Spain and UK recently suggested clamping down on crypto promotions targeted at inexperienced investors.
In another news Russia’s central bank proposed a ban on the use and mining of cryptocurrencies, citing multiple threats including to its citizens’ well-being, country’s financial stability and sovereignty of its monetary policy. However, the biggest blow was dealt by the tightening US monetary policy which sent many crypto-centric stocks and cryptocurrencies plummeting.
As per experts, the ongoing memecoin dumping isn’t unexpected
Mike McGlone, a well-known commodity analyst at Bloomberg Intelligence feels that the memecoins’ recent losses aren’t something unexpected. He believes that since Shiba Inu, Dogecoin and Dogelon Mars were given handsome price pumps last year, speculators may continue dumping them in 2022, in light of the prevailing market conditions, and in favour of more meaningful coins.
In a statement issued via email Mike said, “The dog coins were good examples of the speculative excesses in the space and the sooner the market is cleansed of this silliness, the more likely the three Musketeers — Bitcoin, Ether and the proliferation of crypto dollars — will resume transmogrifying the global financial system.”