What has been propelling Dog-themed tokens
I find it very fascinating that someone can buy a Cryptocurrency today for a couple of hundred or thousand dollars only for it to explode in price and be worth millions in a couple of days, weeks, or months. We are seeing a new breed of millionaires that would never exist were it not for Cryptocurrency.
This year we have witnessed the growth of meme coins and particularly dog-themed ones. It all started with the Dogecoin explosion sometime in May. Then most recently, we have seen the Shiba Inu explosion which has outdone itself. Towards the end of September just, Shiba Inu grew by over 70%, a little late in October, the coin grew by 215% in just one week and hasn’t stopped since.
You see normally when a coin explodes in price, people expect an immediate plunge but that has not been the case for Shiba Inu. It continues to perform well and experts are claiming that the token is far from reaching its fullest potential for the year.
Shiba Inu and Dogecoin are not the only dog-themed tokens that have outdone themselves this year, we had Floki Inu, Baby Floki, Dogecoin pup, and Shiba Floki all recording significant price surges.
What could be causing this exponential growth?
One could argue that Elon Musk is single-handedly responsible for all the recent meme token craze. While there is some truth to that statement, Musk is not the only celebrity that has shown keen interest in Crypto. How come he is the only one that has such a serious impact on the market?
Remember the time when he announced Tesla’s decision to accept Bitcoin as a payment option and the crypto prices went surging? Or when he announced a change of heart due to energy concerns and the prices went plunging? Each time he has tweeted about his puppies, an impact was felt in the crypto sphere.
While I acknowledge that Elon Musk is a significant fixture in the Crypto sphere, I refuse to believe that the market sways are solely dependent on his tweets. It seems irresponsible for people to base their investment decisions on a single person’s tweets. What do you think? Is it prudent for people to visit Elon Musk’s Tweeter account each time they want to invest?
Could there be more?
1. The psychological aspect – Experts have claimed that there is a certain level of bias that propels Shiba Inu, Dogecoin, and all the other dog-themed tokens. Experts say that a lower per-unit price can make a new investor feel a little richer hence explaining why a new trader is more likely to invest in a meme coin than in Bitcoin. I must admit it feels good to say that you own a few hundred thousand meme coins for the same amount of investment that would only give you a fraction of Bitcoin.
2. Growth potential – Although Bitcoin still holds potential for potential growth, its days for extreme price plunges are well behind it. Meme coins have a smaller market capital and trading volume which means that just a little effort from their holders is enough to propel these coins to new heights. One is more likely to make more money investing meme coins than from Bitcoin, Ethereum, and other popular coins.
3. Dedicated community – Bitcoin and Ethereum have been around for years and they no longer have anything to prove; people know them and the potential that they hold. For that reason, the Bitcoin community doesn’t have to be very vocal to be noticed. On the flip side, meme coins are still relatively new and the community and developers have to make a conscious effort to get more people on board. Also, there are very many new tokens in the market thus very stiff competition among them.
A crypto project is only as successful as its community is dedicated and vocal; meme coins seem to have this on lock. Visit any social media website and search either Dogecoin or Shiba Inu, you will find piles and piles of discussions and announcements. In this digital age, a dedicated community is a powerful weapon.
Turns out meme coins have a lot riding for them, if you are considering Crypto investment then a meme coin is a great place to start. Practice caution because Cryptocurrency is characterized by extreme risk.