Memecoin showdown: Dogecoin vs Shiba Inu in June
In the recent week, there's been a noticeable downturn in the memecoin arena, primarily influenced by Bitcoin’s [BTC] reluctance to surge beyond the $70k barrier.
An analysis by CoinMarketCap revealed that amongst the leading five memecoins in terms of market size, only dogwifhat [WIF] experienced an uptick in its value over the last seven days.
Whilst Dogecoin [DOGE] and Shiba Inu [SHIB] shared similar price movements, SHIB maintained its trading within a defined band. DOGE, on the other hand, exhibited greater fluctuation throughout May, albeit with a marginally stronger upward trend.
As we edge into June, the question arises: which cryptocurrency will likely deliver superior gains?
Delving into Social Media Metrics
Evaluating the weighted sentiment offers insight into the prevailing bias—bullish or bearish—within social media interactions. DOGE and SHIB displayed three-day sentiment values at -0.72 and -0.74, respectively, indicating comparable bearish sentiments for the two currencies.
Yet, an examination of the trends reveals Dogecoin’s persistent bearish stance since April, in contrast to Shiba Inu’s predominantly positive outlook over the preceding two months, possibly due to Dogecoin's heightened volatility.
Dogecoin boasted a social dominance rate of 0.927% against Shiba Inu’s 0.339%, reflecting Dogecoin's longstanding prominence within the memecoin domain.
Predicting Increased Volatility for Dogecoin
On May 30th, Dogecoin experienced a significant surge in dormant circulation, suggesting an active transfer of tokens between wallets, often interpreted as a precursor to selling pressure.
Since that spike, DOGE’s price dipped by 3%, though a recovery appeared in motion at the reporting time.
Nevertheless, the possibility of a selling onslaught remains a concern.
Conversely, Shiba Inu exhibited a reduction in on-chain token movement over the past two months, implying a more robust "hold" sentiment among its investors.
Reviewing the Market Value to Realized Value (MVRV) ratios, DOGE's figures were more adverse than SHIB's over the last six weeks, indicating that DOGE investors encountered heavier losses, particularly in the early days of May.
Currently, SHIB investors are experiencing higher unrealized losses.
While the social metrics bore a resemblance, the MVRT ratios depicted that DOGE investors had a higher propensity to sell once values ascended past zero.
Considering the surge in dormant circulation, Dogecoin may be on the brink of experiencing greater volatility than Shiba Inu.
