Dogecoin (DOGE) and Shiba Inu (SHIB), the two largest “meme coins” in the crypto market have skyrocketed in recent hours. DOGE has surged by 120% in the last 7 days and Shiba Inu has moved higher by 31% as well. Other digital currencies such as Binance Coin (BNB) and Cardano (ADA) have also moved higher by over 15% during the same period of time.
Dogecoin and Shiba Inu Skyrocket as Elon Musk Takes Over Twitter
Elon Musk has started a new bullish period of Dogecoin and Shiba Inu as these two virtual currencies registered massive gains in recent days. At the end of last week, Elon Musk closed a deal to take over Twitter and some changes are already visible on the social media network.
Elon Musk has been a key supporter of Dogecoin over the last few years. He is considered to be one of the most influential figures in the crypto market, and his declarations, have many times moved the market, affecting especially DOGE. Investors in the crypto market are now waiting for further integrations between Twitter and DOGE or even Bitcoin.
Nevertheless, Bitcoin has lagged behind altcoins during the last 7 days. For example, the digital currency has moved higher just by 8.5% during this time. This shows that market players are paying close attention to what is happening with DOGE and Shiba Inu (or other digital assets) rather than on Bitcoin. These are usually speculative moves that help short-term investors bet on the price movement of DOGE and SHIB.
Dogecoin has now reached a price per coin of $0.1297 per coin and a market capitalization of $18 billion, surpassing Cardano, Solana (SOL), and Polygon (MATIC). This shows the strength that DOGE gained in recent days. At the same time, if it continues to move higher, we could see DOGE surpassing Binance USD (BUSD) and XRP.
While Dogecoin and Shiba Inu are more related to social media trends and forum discussions (for example during the GameStop market manipulation in early 2021) than to fundamentals. Despite that, there are some positive things to mention about DOGE and SHIB. Dogecoin could get integrated into different Twitter solutions if Elon Musk decides to bring crypto to Twitter.
There will be a prioritization of DOGE rather than Bitcoin, which could bring additional flows to Dogecoin in the near future. The case for SHIB being used at Twitter is more limited though. SHIB usually follows DOGE’s trend but tends to lag behind with a few exceptions. Therefore, the market should be ready to see volatility in altcoins, especially DOGE and SHIB in the coming months.
Bitcoin, instead, is more correlated to macro economic trends linked to central banking and traditional finance. These are two different types of assets (BTC and DOGE), which require different analytical frameworks to understand what could happen to them. One thing is clear, if Bitocin moves higher, then other altcoins follow most of the times. At the time of writing this article, Bitcoin is being traded at close to $20,850 and it has a market capitalization of $400 billion.