Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Memecoins Dogecoin, Shiba Inu Jump as Ethereum Optimism Spreads

Published 15/08/2022, 08:12
Updated 15/08/2022, 08:12
© Reuters

© Reuters

(Bloomberg) -- Dog-themed cryptocurrencies jumped on Monday amid broader retail-investor enthusiasm in the market, particularly as Ethereum works toward its much-anticipated software upgrade.

Dogecoin is up about 14% over the past five days, while Shiba Inu has gained almost 40%, according to pricing data compiled by Bloomberg. The meme tokens are holding their gains even as Bitcoin sits around $25,000 and Ether hovers at about $2,000 amid optimism around its upgrade, known as Merge, now expected around Sept. 15.

“Dogecoin and Shiba Inu have both broken out over the weekend, clear evidence that the retail investor is back,” said Hayden Hughes, chief executive of social-trading platform Alpha Impact in a message Monday, noting that there is optimism both coins will gain like Ethereum as they’re each due for upgrades as well.

The crypto market has shown some signs of recovery with its total market cap at around $1.2 trillion now, after having dropped to around $875 billion as of June 19, according to data from CoinGecko. 

Lower-than-expected inflation prints out of the US last week boosted hopes that the Federal Reserve might be able to ease off its pace of rate hikes, helping riskier assets like crypto. Ethereum has also been supported after a final test stage before the Merge upgrade which co-founder Vitalik Buterin estimates will occur around Sept. 15.

Read more: Ethereum Founder Buterin Forecasts Blockchain Merge on Sept. 15

Still, not everyone is all-in on the memecoin trend just yet. 

“These coins don’t have the depth of market at times like Ether or Bitcoin, so when a bit of demand comes through, they hit a liquidity pocket and fly up, drawing in more speculators,” said Cici Lu, chief executive officer at consulting firm Venn Link Partners, in a message Monday. 

Alpha Impact’s Hughes offered a note of caution about the rally as well.

“Alpha Impact traders have been on the sidelines, waiting to see if this trend is picked up by institutional investors who tend to trade during the week,” Hughes said.

©2022 Bloomberg L.P.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.