Meme coins have always excited their investors with the hype surrounding them since the day they emerged. These coins drag their investors through various moods and emotional states. While all this is happening, eyes turn to Dogecoin (DOGE), the top of the meme coin hierarchy, and its closest follower, Shiba Inu (SHIB). Last year was not very successful for these two altcoins, so let’s take a look at how the competition between them unfolded.
DOGE or SHIB?
When it comes to market value ranking, Dogecoin still leads the list of meme coins. Despite the crypto market surge last year, 2023 did not seem to be a good year for DOGE. The growth it experienced was called a complete disappointment among investors.
According to CoinMarketCap data, the first dog-themed meme coin was only able to show a gain of 1.06% over the past year, shocking its investors. On the other hand, Shiba Inu (SHIB), inspired by DOGE and its biggest competitor, managed a modest but slightly better rise of 3.62%.
Moreover, the price directions of the two meme coins were clearly showing the recent difference. While DOGE experienced a 12.45% loss in value over the past month, SHIB pleased its investors with a 4% growth during the same period.
Is SHIB Taking Over Doge’s Place?
While all this was happening, things were also looking negative for DOGE in terms of trading activity, with a decreasing demand reflected in the charts. According to data provided by Santiment, DOGE’s daily USD volume saw a 39% decrease compared to the previous month. Meanwhile, its rival SHIB was ahead, with its transaction value in USD increasing by 2% over a one-month period.
The analysis of on-chain activities also revealed a similar trend. In the first 14 days of 2024, there was a noticeable decrease in DOGE’s daily transaction count, by 68%. On the other hand, if we talk about Shiba Inu, there was an 8% increase in transactions within its ecosystem.
The Relationship Between Elon Musk and Dogecoin
Since the day its name began to be mentioned, DOGE and Elon Musk have always had a clear connection. Musk’s moves have always had direct and indirect effects on DOGE.
Unlike the relationship between Elon Musk and DOGE, Shiba Inu and even other meme coins like Bonk (SAGA Phone) have always been striving for real-world use cases and how to move forward. This situation causes DOGE to operate within a limited structure.
Elon Musk had a significant impact on prices with his tweets during the past bull market, but he could not demonstrate the same power during the bear market, leading to a clear separation between the DOGE and Musk effect.
Due to its low performance in the crypto market, there has also been a weakening in the speculation-driven movements affecting DOGE. According to data from Coinglass, there is a noticeable difference in the number of investors taking short positions in DOGE compared to those taking long positions.
If we examine the same situation for SHIB, currently 64% of the open positions are long, once again demonstrating investors’ confidence in its rise.
