Dogecoin surged as much as 13 per cent to $0.06932 in the last 24 hours, thanks to another push on Twitter from the mercurial technocrat. Its arch-rival and next biggest meme coin Shiba Inu soared about 40 per cent to $0.000008637 in the same period.
Recently Musk said he will continue to support Dogecoin. His company Tesla accepts Dogecoin for merchandise and SpaceX is likely to do the same.
Tarusha Mittal, COO and Cofounder, Uniform said the current rally in meme coins may not bring the bulls back into the market as recession fears loom.
The volumes for Shiba Inu spiked more than 425 per cent in the last 24 hours as the SHIB coins worth $1.75 billion exchanged hands, the data from Coinmarketcap suggested. Dogecoin also saw a solid jump in the trading volumes as they increased by 85 per cent in the given period. Dogecoins worth $1.04 billion were traded during the slated duration.
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Shiba Inu has begun to rise dramatically after a recent news announcement that SHIB has become the second most held asset by Ethereum whales, surpassing Tether, a stable coin, said Raj A Kapoor, Founder, India Blockchain Alliance.
“As these whales have started to increase their SHIB investments, others seem to be doing the same. SHIB is rising fast, but it is difficult to tell whether this rise will be a long-term trend or a short-term fluke.”
Market experts, however, warn that Shiba Inu’s lack of real-world use cases makes it difficult for this token to be adopted by many as anything more than a medium of exchange.
Shivam Thukral, Founder & CEO, BuyUcoin said that Dogecoin (DOGE) rally is mostly driven by supportive tweets by Elon musk; it is difficult to say for how long this momentum will last.
“DOGE needs to find a real-world use case as it was originally designed to be a medium of payment. The rally in the meme coin space is expected to be short-lived as it is not driven by strong fundamentals,” Thukral added.
On the other hand, Kapoor believes that the confidence among crypto investors continues, and Shiba Inu and Dogecoin may once again break into the top-10 crypto assets.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)