In recent times, Dogecoin and Shiba Inu have thrived in the highly volatile cryptocurrency market. With the help of Elon Musk, a well-known crypto influencer, crypto investors are paying close attention to these two cryptocurrencies.
On CoinMarketCap, Dogecoin and Shiba Inu occasionally make it to the top ten cryptocurrency list, while other times they fall short. Prices fluctuate a lot, so cryptocurrency investors should keep an eye on the current price before investing in Dogecoin or Shiba Inu.
Let’s take a look at how these two cryptocurrencies will be put to the ultimate test for crypto investors in the near future.
Are Dogecoin and Shiba Inu going to crash?
Cryptocurrencies are set to be put to the ultimate test in the coming days, with prices nearly 80% lower than last year’s high point in 2021.
The emergence of the deadly COVID-19 pandemic and its various variants, the Russian-Ukraine war, and a slew of other events have all had a negative impact on the cryptocurrency market.
The current risk-off market expresses concern about the future of Dogecoin and Shiba Inu. Crypto traders believe that the current crypto sell-off will have a significant impact on these memecoins in the near future. Bitgert, Seesaw Protocol, Lucky Block, Avalanche, and a slew of other cryptocurrencies are posing a serious threat to these two cryptocurrencies.
Shiba Inu is preparing to launch the Shibarium layer-2 solution in order to boost the memecoin’s brand. However, the longer the launch is delayed, the more negative the impact on Shiba Inu from the perspective of crypto investors. In the highly volatile market, Shiba Inu has decided to use the burning strategy to set its price.
In 2021, the Shibburn strategy burned over 7.2 billion cryptocurrencies in order to increase memecoin demand by reducing supply in the market. It has also announced the launch of ShibaSwap 2.0, which will address the burning strategy for efficiently and effectively skyrocketing cryptocurrency prices.
However, Shiba Inu’s burning strategy may be put to the ultimate test in the coming days. The burning of billions of memecoins is not expected to have a significant impact on the rise in cryptocurrency prices in 2022.
Dogecoin, on the other hand, entered the cryptocurrency market in 2013 as a memecoin intended to compete with Bitcoin. It has attracted millions of crypto investors and has established itself as a mainstream cryptocurrency. With the help of cryptic tweets from crypto influencer Elon Musk, 2021 was the best year for Dogecoin.
It is expected that this cryptocurrency will grow in popularity in the coming years, and that some merchants and marketers will begin accepting Dogecoin as a form of payment in a short period of time.
However, DOGE may face stiff competition from dog-related cryptocurrencies such as Shiba Inu, Floki, and others. It was successful in gaining more than 12,000 percent in 2021. However, by 2022, it will have fallen by 80% from previous highs.
Other cryptocurrencies, such as Ethereum and Solana, are primarily concerned with providing smart contracts and other features. Dogecoin, on the other hand, is merely a memecoin used to make jokes on the cryptocurrency market.
Only about 2,000 global merchants accept it, despite the fact that there are millions of businesses worldwide. Elon Musk has the ability to manipulate the cryptocurrency price, resulting in either a sharp rise or a sharp drop.