- As hopes rise for US regulators to approve the first spot Bitcoin exchange-traded fund (ETF) soon, and expectations of a significant drop in interest rates by 2024 support prices.
- Initially started as jokes about internet memes rather than serious blockchain projects, Dogecoin and Shiba Inu represent the frothiest parts of the crypto market.
- These tokens have outperformed Bitcoin in the past few weeks. While the largest digital asset gained 22% since November 21, Dogecoin prices surged by 40% during this period.
As spot Bitcoin ETFs boost BTC prices, DOGE and SHIB tokens are also leading the crypto rally: The crypto rally may expand!
Following Bitcoin, DOGE and SHIB Gain Momentum
If investors need more evidence that interest in digital assets is returning, they need to look at the leading dog-themed meme coins Dogecoin and Shiba Inu from the recent crypto rally.
Tokens are on the rise, with the largest cryptocurrency, Bitcoin, gaining momentum as hopes rise for US regulators to approve the first spot Bitcoin ETF soon, and expectations of a significant drop in interest rates by 2024 supporting prices. However, it is observed recently that not only Bitcoin is benefiting; smaller tokens or altcoins are starting to outperform their big brothers, signaling that optimism can spread.
Meme coins are a good example of this. Initially launched as jokes about internet memes rather than serious blockchain projects, Dogecoin and Shiba Inu represent the frothiest parts of the crypto market. Dogecoin makes reference to an internet meme featuring a Shiba Inu dog, and Shiba Inu token is the next version of that meme playing on the Dogecoin.
These tokens have outperformed Bitcoin in the past few weeks. While the largest digital asset gained 22% since November 21, Dogecoin prices surged by 40% during this period, and Shiba Inu gained 34%. In the last 24 hours alone, Dogecoin and Shiba Inu outperformed Bitcoin with a 14% increase each, while Bitcoin increased by 5%.
The Crypto Rally Can Expand Further
The spread of optimism to altcoins and especially meme-like names is a sign that the crypto rally is expanding, and this trend should raise expectations for companies relying on altcoin trading for a significant part of their brokerage business, such as Coinbase Global.
For now, the momentum in meme coins is a positive sign for the overall cryptocurrencies. However, if this momentum diminishes, it could be a sell signal: When crypto markets become overly frothy, along with even bigger gains for smaller coins, it could be a sign of a correction being needed.
