Meme Coins SHIB and DOGE record highest losses as the trading volumes drop and the market crashes so let’s see more in our latest altcoin news today.
Dogecoin and Shiba Inu seem to have burned out during the recent price crash on the market. Reports showed that the trading volume on the market fell over 40% last month and the number taken from top exchanges saw the volume traded in Juen being dramatically lower than that in May. The prices followed the lead of Bitcoin which dropped to the $28,000 threshold the same month. Before then rising back to reclaim over $30,000 and despite the recovery, the damage seemed to have been done. The market was in a two-month-long recovery and continued to suffer price dips. ETH for example saw prices drop below $2000 and after this, the meme coins haven’t been left out of the crash. This opens up the question about why the meme coins seem to have it the worst as top coins fall and meme coins are trading in mid to high range dips.
A good place to start will be to check the growth of the meme coins against other coins. The meme coins have outperformed most coins in terms of short-term growth and it only makes sense then that more people will be selling off their coins to take out huge profits they have acquired. Meme Coins like Shib and DOGE saw major growth in less than a year and Doge started the year with $0.01 but now trades for $0.1947. The highly volatile nature of the coins makes them quite susceptible to wild movements and this is a good thing only when it comes to the price of the coins going up but it can surely go the other way when the prices are down.
The price of the meme coins is going up in value and it means that they get into overpriced territory quite fast. They also tend to get sharper and harsher price corrections in a shorter amount of time. The reports from CryptoCompare show that the trading volumes were down across the board and exchanges even recorded massive losses in trade volumes in June. The prices of the meme coins have seen major dips and dogecoin is now down by 10% in the past week. SHIB shows the same movement following the price of Doge.
These low volumes were attributed to the declining prices of other coins and the low volatility that is present in the market. On the heels of this were the massive FUDs haunting cryptos and things like China’s crackdown on Mining and low hash rates are also contributing. There’s a continuing fear that the entire market is headed for a bearish market and to some people, the bear is already here and the investors are prepared to catch up.
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