Shiba Inu, Dogecoin, Dogwifhat, Floki bleed: Is it the end of the road for dog coins?

2024-4-18 00:35

Dog coins Shiba Inu (SHIB), Dogecoin (DOGE), Dogwifhat (WIF), and Floki (FLOKI) prices have suffered a double-digit correction, between 20 and 30% in the past week. Meme coins rallied alongside Bitcoin in March and BTC’s drop to $61,000 is one of the key catalysts that resulted in a decline in dog coin prices.

Cat coins and Artificial Intelligence (AI) token prices have rallied in the past day.

Bitcoin correction drags down dog coins, meme coins

Bitcoin’s steep decline to $61,000 on Wednesday is marked by a correction in dog coins like SHIB, DOGE, WIF and FLOKI. Most meme coins touched new highs almost every day alongside Bitcoin’s price rally in March. The largest cryptocurrency’s correction has flipped the table on speculative meme coin bets for traders.

Coingecko data shows double digit decline in meme coin prices on the weekly timeframe, and up to 6% drawdown in SHIB, DOGE, WIF and FLOKI, on Wednesday.

While traders’ meme coin gains are eclipsed, Andreas Brekken, founder of no-sign-up crypto exchange SideShift.ai told The Agenda Podcast that meme coins are “a super easy and friendly way for normal people to get involved in crypto,” this makes them a net positive for the crypto ecosystem.

Brekken compares meme coins to gambling bets and believes it ultimately improves the blockchain ecosystem.

Cats take the reins as dog coins slow down

Cat coins and AI tokens have garnered attention from market participants as dog coin’s shed their recent gains. Leo (LEO), Zorro (ZORRO), LOAF CAT (LOAF), Kira the Injective Cat (KIRA), and Pajamas Cat (PAJAMAS) prices have climbed between 2% and 12%, as seen on CoinGecko.

Cat coins and AI token gains can be attributed to capital rotation as traders pull out of speculative meme coins that rallied alongside Bitcoin. The latest developments in AI, the Artificial Super Intelligence (ASI) token merger event are likely net positive for the ecosystem. This is driving gains in AI tokens.

Dog coins are likely to continue bleeding unless Bitcoin recovers from its freefall. Traders need to watch their investments in meme coins closely since vast majority of these projects end up facing an exploit or rug pull, draining users of their investment.

The post Shiba Inu, Dogecoin, Dogwifhat, Floki bleed: Is it the end of the road for dog coins? appeared first on Invezz

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