Dogecoin has gained about 14 percent in value over the past week. At Shiba Inu, it is almost 40 percent, as data from Bloomberg suggests. The two meme tokens are increasing in price, even if the world’s largest cryptocurrency Bitcoin remains little changed at just under $ 24,000. Ether is benefiting from the expectations of the planned technical innovations and has at least upgraded about 10 percent to almost $ 1900 within the week period. The upgrade of the Ethereum network, called “Merge”, is expected to take place around September 15.
Dogecoin and Shiba Inu will also be upgraded. “Dogecoin and Shiba Inu both surged over the weekend, which is clear evidence that retail investors are back,” Hayden Huges, CEO of trading platform Alpha Impact, wrote on Monday.
The entire crypto market currently has a capitalization of about $ 1.2 trillion, after it collapsed to $ 875 billion in mid-July. Slightly lower than expected inflation figures in the US are fuelling speculation that the Federal Reserve may slow down its rate hike. Like other risk assets, the crypto currencies have been suffering from the rise in interest rates since the beginning of the year.
But doubts about the sustainability of the recent meme token rally follow on the heels. Dogecoin and Shiba Inu are still something like lightweights: “These coins do not have the market depth like Ether or Bitcoin,” says Cici Lu, CEO of the consulting firm Venn Link Partners. If some demand arises, these would hit a “liquidity hole” of missing ask prices, which could easily push the price up and thus attract more speculating investors.
Alpha Impact CEO Hughes said traders on his platform had been on the sidelines recently. Their interest was in the institutional investors who traded during the week. Accordingly, they were still waiting for a signal.
(Bloomberg/cash)
