In a context of degradation, memecoins are feeling the pinch. The battle is raging between the two leaders of the memecoins sector. So who has the biggest weapons to win the battle?
Doge and Shiba Inu victims of the fall in the markets
These are the last few weeks in the crypto market unceasingly. After a relatively green start to August, a new fall began on August 19. Bitcoin fell in a few days from $23,000 to less than $20,000. Apart from a few projects, such as Chilliz, Cosmos or even Tamadoge, the rest of the market followed suit. In these circumstances, it is usually not good to be a memecoin.
Both memecoins also decreased in size. The DOGE fell from $0.08 to $0.061 at the time of writing. This corresponds to a down about 7% during the week. As for the SHIB, it went from $0.0000016 to $0.000012 at the time of writing. Here too, a 7% drop over the week.
For full capitalization, Dogecoin maintains its place in the top 10 slightly ahead of Polkadot with $8.177 billion. It is always ahead of its competitors Shiba Inu is 14 degreesth with $6.709 billion. The project has lost a few places with this new drop in the market.
All the projects manage the same to maintain themselves in the the front of the largest caps. They are now ahead of behemoths like Avalanche, Cosmos or even Litecoin.
What do the indicators tell us?
To consider the state of form of the two memecoins, let’s look at the first MVRV-ratio. The latter compares the Market cap and realized cap. The Realization Cap calculates the value of the properties at the time of their last movement on the blockchain. We can say that this is the price that investors really pay. By comparing it with the Market Cap, we can see the positive difference in favor of the majority of investors or negative in their disadvantage.
So this indicator can know if the current price is lower than the fair value shown in this Realized Cap. This MVRV ratio was –11.81% on Shiba INU and of -17.32% on Dogecoin. This indicator shows the capital loss realized for the time being by some investors.
However there are some encouraging indicators for both projects. According to LunarCrush, Dogecoin is the third social participation project in the past week. Shiba Inu also protects itself by placing 7th of this class. It is not surprising that these two signs contributed to their success on the commitment, especially digital, community!
Another exciting indicator is the whale holdings on the Binance Smart Chain. Among the top 100 of these huge wallets, there are a increased funds in Dogecoin. This could be a sign that these wallets are starting to come at an attractive price. So they accumulate Dogecoin in order to increase in price.
For his part, Shiba and his community are preparing to launch the game Shiba Eternity. According to project manager William Volk, the game will launch in September. Therefore Shiba continues to develop to show that it is more than just memecoin.
After ShibaSwap, home DEX. The latter can provide liquidity, generate attractive returns but also stake your assets and exchange your tokens in a few seconds.
These two projects are even more affected by degraded conditions than others “useful”. Memecoins are often among the first to try them out vertiginous falls in the case of a bear market. However, Dogecoin and Shiba Inu are holding up well so far.
Still in the top 15 of the biggest caps, neither has fallen yet. In addition, they are relatively far from the recent scandals or hacks that affect the crypto community.
The coming weeks and months will tell us if the two projects manage to go against each other over time. Always supported by a strong community and attract investors looking for a nice capital gainthey have arguments to survive this bear market.
To learn more about the macroeconomic conditions and the impact on the crypto market, find our article here.