They may be a joke to some, but to many, meme coins like Dogecoin and Shiba Inu are no laughing matter, especially with the rise in the price of Ethereum.
The price of Dogecoin (DOGE), the meme-based cryptocurrency, has surged over 20% in the past five days as investors continue to pile into so-called “joke” assets.
The price of Ethereum’s native currency, ether, has also jumped around 10% in the past day. The sudden uptick in price for these assets comes as investors remain optimistic about the long-term prospects for digital currencies, even as prices have pulled back in recent weeks.
What drives the growth of the two dog-themed meme coins?
According to a Bloomberg report, Dogecoin, which launched in 2013 as a joke, ranks tenth on CoinMarketCap with a market value of $10,155,967,930.
The digital currency hit an all-time high on Saturday, reaching $0.08 cents after starting the year at just $0.002
And the price of Shiba Inu (SHIB) has also surged in recent weeks, though it has pulled back from its all-time high set on Saturday where it ranks 12 on CoinMarketCap.
According to analysts, the sudden increase in the price of these meme-based digital currencies comes as investors remain optimistic about the long-term prospects for digital currencies, even as prices have pulled back in recent weeks.
These two coins are driven by the strength of their community. For instance, Dogecoin has been endorsed by celebrities like Elon Musk. Shiba Inu, on the other hand, has gained popularity due to its association with the popular “Doge” meme.
According to Bloomberg, this comes as a lower-than-expected inflation print from the U.S. Federal Reserve (Fed), which reaffirmed its dovish stance on monetary policy and has spurred a rally in risk assets.
What next for Dogecoin and Shiba Inu?
There is no guarantee the two coins will continue to increase in price as the crypto market is highly volatile. The price of Shiba Inu has surged in recent weeks as well, though it has pulled back from its all-time high set on Saturday.
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