Dogecoin and Shiba Inu are rallying and outperforming the two most popular cryptocurrencies in the world, Bitcoin and Ether. This DOGE and SHIB rally has surprised analysts.
At the moment, DOGE has the most significant market cap of all meme cryptocurrencies in the world, gaining over 21% in the past seven days alone. This has placed it at its highest trading price since June first, at almost nine cents.
Shiba Inu, which has gained popularity as a self-proclaimed Dogecoin killer, has also grown by over 50%. Its price has reached the highest value in the past three months, at $0.00001700. By comparison, the market cap of Bitcoin and Ether has only increased by 3% and 11%, respectively.
Investors Skeptical of DOGE and SHIB Rally
The rally has caused investors to be skeptical of this growth due to how rallies have proved to be contradictory indications in the past. A recent example is how during the last rally, in April 2021, DOGE reached triple-digits, performing better than both Bitcoin and Ethereum, only for its valuation to be halved to $1.25 trillion in the following two months.
When the meme coins start pumping, you know the end of the rally is coming around the corner. Liquidity moves from BTC→ETH→ALTS→MEME→DUMP — I have seen this again and again. Let's see if it holds true again.
— cto.x (@0x278) August 16, 2022
The Cryptocurrency Market Downtrend Continues
Regardless of how meme cryptocurrency rallies have fared in the past, analysts are not yet prepared to attribute the current move to speculative frenzy. Despite the increase in performance, both DOGE and SHIB are still 80% below their highs.
Regardless of the recent performance of most cryptocurrencies, including that of Bitcoin which has increased in value by 30% over the course of the last two months, the market continues to be on a downtrend. This is likely to continue due to the U.S. Federal Reserve monetary tightening. However, this also makes it unlikely that the rally is speculative as investors are currently not looking to risk gambling their money for a quick profit.