It’s all fun and games until your favorite canine crypto starts hemorrhaging gains. And this week, Dogecoin and Shiba Inu have done just that.
The largest meme coin by market capitalization Dogecoin (DOGE) is currently down almost 8% over the past seven days. This puts the price of DOGE at roughly $0.13 a pop, according to CoinMarketCap.
Since the token’s all-time high set in May 2021, Dogecoin has fallen a whopping 82%.
Dogecoin’s co-canine crypto Shiba Inu (SHIB) has also fallen on tough times. At writing, SHIB has dropped around 11% over the past week. The token is now trading at $0.0000208, down more than 76% since its all-time high set last October.
SHIB’s price action also means that there are more global investors who are “out of the money” than there are “in the money,” according to data pulled from IntoTheBlock.
This means that there are more investors, approximately 710,000 addresses, holding SHIB who have currently lost money on their meme coin investment than there are investors who have made money (which is roughly 366,000).
What’s driving Dogecoin, Shiba Inu price action?
It’s difficult to establish a clear reason behind the price action for the canine meme coins.
This is especially true given what appears to be a rather bullish week of news for both Dogecoin and Shiba Inu.
For example, Bitso, one of the more popular crypto exchanges in Mexico, announced on Tuesday that it would list Dogecoin.
As for Shiba Inu, the project’s recently-launched “Burn Portal” has destroyed more than 23 billion SHIB tokens. The platform essentially removes these tokens from circulation, which has been pitched to reduce the token’s inflation and potentially increase its price.
Still, these events haven’t inspired buyers. Looking over the past 3 months, the number of total addresses holding Dogecoin has dropped from 4.55 million to 3.84 million, according to IntoTheBlock. It also appears that this week's news has done little to bring investors back.
Similarly, the number of Shiba Inu addresses has fallen from 1.15 million to 1.08 million.
Before either of these cryptocurrencies can begin approaching all-time highs, they'll need to first convince investors that there's more than just memes backing Dogecoin and Shiba Inu.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.