The meme coin’s value has crossed the $0.134 mark and surpassed the high from last month, bringing it close to the July top.
Meanwhile, Dogecoin’s cousin, Shiba Inu, has also experienced a 5% boost in value during the past day. According to analytics firm Saintlythe, the Social Dominance of meme coins spiked during Bitcoin’s previous high, suggesting that investors were shifting their focus to speculative assets.
This interest in meme coins eventually coincided with the market peak.
Dogecoin Surges 9%, Raising Concerns for Bitcoin’s Future
Dogecoin, the popular meme-based cryptocurrency, has surged 9% in the last 24 hours, standing out from the overall cryptocurrency market that has seen relatively flat price action. The ongoing rise of Dogecoin and other meme-based cryptocurrencies highlights the ongoing volatility and unpredictability of the digital asset market.
As investors continue to chase speculative assets, it remains to be seen whether the recent success of these meme coins will eventually lead to a market correction.
The renewed focus on meme coins, however, could be a negative sign for the broader cryptocurrency sector. The firm explains, “Typically, markets correct when focus shifts away from layer 1’s and toward more speculative assets due to greed.” With Dogecoin and Shiba Inu dominating the meme coin market, investor greed may still be high, potentially leading to more bearish action for Bitcoin and other top assets.
Data reveals that the cryptocurrency market has typically reached its lows when attention shifted back to layer 1 networks. If the current run in the sector continues, there may have to be a shift in focus in order for the rally to persist.
