DOGE’s Lackluster Growth: Is the Original Memecoin Losing Its Luster?
The once beloved and iconic Dogecoin has seen a turbulent year in terms of growth. Despite being the highest-ranking memecoin in terms of market capitalization, Dogecoin’s performance in 2023 was underwhelming to say the least. According to CoinMarketCap, the original “dog coin” only registered gains of 1.06% in the past year. In comparison, its spinoff, the Shiba Inu token (SHIB), saw slightly better gains of 3.62%. This raises the question of whether DOGE is losing its shine in the memecoin space.
SHIB Takes the Lead: Why Traders Prefer the Shiba Inu Token Over DOGE
Recent data reveals a clear shift in preference among traders when it comes to memecoins. Over the last month, DOGE’s value decreased by 12.45%, while SHIB experienced a growth of 4%. This difference in trajectory is reflected in trading activity as well. Analysis of Santiment data shows that DOGE’s daily USD volumes dropped by 39% in the last month, while the USD worth of SHIB transactions increased by 2%. This suggests that traders are increasingly favoring SHIB over DOGE, signaling a shift in the memecoin landscape.
DOGE’s Declining Transaction Count: A Cause for Concern?
The decline in DOGE’s transaction count is another cause for concern. Since the start of 2024, DOGE’s daily transaction count has plummeted by 68%. In contrast, transactions on the Shiba Inu ecosystem have risen by 8%. This decline in transaction activity may indicate a lack of interest and utility for DOGE compared to its competitors. While memecoins like SHIB and Bonk have actively worked on developing real-world use cases, DOGE has remained confined to the influence of Elon Musk and his social media endorsements.
Lack of Real-World Use Cases: How DOGE’s Dependence on Elon Musk Is Holding It Back
DOGE’s over-dependence on tech billionaire Elon Musk and his social media presence has hindered its growth. While other memecoins have focused on creating real-world utility, DOGE has largely relied on Musk’s tweets to drive its price. However, during the bear market, there was a clear decoupling between Musk’s posts and DOGE’s price behavior. This has diminished DOGE’s appeal and left it struggling to find meaningful use cases outside of Musk’s influence.
Traders Bet Against DOGE: Speculative Interest Wanes as SHIB Gains Popularity
The underwhelming performance of DOGE in the spot market has also reduced its speculative interest. According to CoinGlass data, more traders are now betting on DOGE’s decline rather than its rise. On the other hand, nearly 64% of all open positions for SHIB are bullish-leveraged, indicating a more optimistic view. This suggests that traders are increasingly turning away from DOGE and shifting their focus to SHIB, which has gained popularity for its potential and promising growth.
In conclusion, DOGE’s lackluster growth, declining transaction count, and reliance on Elon Musk have raised concerns about its long-term viability as the leading memecoin. Meanwhile, SHIB has emerged as a preferred alternative, with traders showing more enthusiasm and optimism towards its potential. The shifting dynamics in the memecoin landscape indicate that DOGE is losing its luster, while SHIB gains traction and popularity. Only time will tell how this memecoin battle unfolds and which coin will ultimately come out on top.
Analyst comment
Neutral news.
As an analyst, the market for DOGE is expected to face challenges due to its lackluster growth, declining transaction count, and reliance on Elon Musk. Traders are increasingly favoring SHIB over DOGE, indicating a shift in the memecoin landscape. This suggests that DOGE may continue to struggle while SHIB gains traction and popularity. However, the outcome of this memecoin battle is uncertain and will only be determined over time.
