in March, the popularity of meme coin like Shiba Inu (SHIB) and Dogecoin (DOGE) in the cryptocurrency market saw a significant increase.
Initially driven by enthusiastic communities and viral social media trends, these coins and tokens are now aiming to establish themselves within a more stable cryptocurrency ecosystem. Moreover, various upcoming events in the market create favorable conditions for these meme coin and coins.
Positive market winds for meme coin
The upcoming Bitcoin (BTC) halving process historically coincides with a rise in Bitcoin prices. It creates significant impact across the entire cryptocurrency market, which also benefits meme coins like SHIB and DOGE.
In addition, legal approval for a US-based Ethereum (ETH) spot ETF attracts institutional investors to the market. Consequently, this capital positively affects the value of meme coins. Compared to well-known coins, lower entry points may appear more attractive to new investors.
Challenges in the growth of meme coin
However, achieving a market value of $25 billion by 2024 remains a significant challenge for these coins. Volatility in the crypto market continues to be a major barrier. Unforeseen market changes can disrupt the price stability of these coins and limit their market value growth.
Shiba Inu (SHIB)!
Shiba Inu currently has a market value of $13.56 billion, a significant decrease from its peak value of $43.51 billion in October 2021. The development of Shibarium continues. SHIB’s Layer 2 blockchain network has the potential to improve transaction speeds and reduce fees. Additionally, enhanced functionality, along with a strong supporter community, contributes to the future growth of SHIB’s market value.
Last week’s negative exchange wave for SHIB indicates a potential shift in investor sentiment towards accumulation. The transition to self-custody methods, with buyers opting for long-term storage solutions, reduces immediate selling pressure, favoring a bullish trend. The development of Shibarium and SHIB’s burn rate are turning points. More than 4 million blocks active in the network demonstrate its use. Moreover, a significant increase in daily transactions shows increasing demand for the meme coin. SHIB’s burn rate nearly increased by 50,000%, removing millions of tokens from circulation, making it scarcer and potentially increasing its value over time.
Dogecoin (DOGE)!
Dogecoin currently has a market value of $23.2 billion, which is a significant drop from its peak of $46.14 billion in May 2021. Additionally, DOGE’s association with influential figures like Elon Musk continues to attract attention. Like SHIB, DOGE’s past performance indicates the possibility of reaching $25 billion by 2024. Consequently, their ability to create active use cases will affect their long-term market potential.
Both coins started January with a slight decrease but have recorded significant recovery. As of April 15, SHIB has increased by 116.55% since the beginning of the year, while DOGE has experienced a 74.14% increase. In other words, this year is proving to be an interesting one for both SHIB and DOGE.
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