Shiba Inu and Dogecoin Take a Major Hit

Shiba Inu and Dogecoin Take a Major Hit

Top meme coins like Shiba Inu (SHIB) and Dogecoin (DOGE) took a major hit in the last few days after the market cap of both cryptocurrencies dropped below $30 billion. The latest dip means that DOGE and SHIB are no longer among the top 10 digital currencies.

In the past 24 hours, Shiba Inu lost approximately 6% of its value. With a market capitalization of $24 billion, SHIB is the world’s 12 largest digital asset. On the other hand, Dogecoin dropped by 4% during the same period. DOGE’s current market cap stands at around $29 billion.

After reaching an all-time high market cap of $3 trillion, the crypto market saw a major correction during the last week. Overall, the digital assets lost almost $500 billion worth of market cap. Apart from Shiba Inu and Dogecoin, other leading cryptocurrency assets, including Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Solana (SOL), and Cardano (ADA) are also down by more than 10% in the past 7 days.

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Meme Coins vs Stable Coins?

While investors enjoyed significant gains on Shiba Inu and Dogecoin in 2021, the latest correction has caused a major shift in the overall sentiment around meme coins. In fact, the majority of the fresh investment is now going into stable coins like Tether (USDT) and USDC.

“The largest 1-hour Tether inflow to exchanges of the entire year occurred Thursday. At 8 am UTC, over 771.6m USDT was transferred to exchanges. Then, just 6 hours later, 454m USDC was then transferred to exchanges, a 4-month high of its own,” crypto analytics firm Santiment highlighted in its recent Tweet.

Despite the recent decline in prices, DOGE and Shiba INU are still among the best performing digital currencies in 2021. Both digital assets are more valuable than cryptocurrency Litecoin. However, it remains to be seen if the latest dip in SHIB and DOGE is part of the wider correction or the interest of investors in meme coins has declined gradually.