Dogecoin (DOGE) and co.: meme coins benefit from Bitcoin rally

Bitcoin (BTC) continues to trade at over USD 41,000 and is also following the price curves of many altcoins. This is particularly evident with meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB).

When Bitcoin (BTC) is booming, as is currently the case, other cryptocurrencies often benefit too. Ethereum (ETH), for example, has risen by around 5% since the start of the week and has settled at levels of around USD 2,200, which is a high for the year. But what is actually happening in the meme coin segment?

As is well known, this is led by Dogecoin – and indeed: DOGE has also gained around 7 percent since the weekend and is on course to reach a high for the year. The self-proclaimed Dogecoin killer Shiba Inu (SHIB) also saw its price jump by 7 percent.

When meme coins experienced an upswing at the end of October, PEPE was one of the winners. Now PEPE has jumped 20 percent in the wake of Bitcoin. Memecoin (MEME), which was only launched at the beginning of November, has climbed to a high for the year with a gain of almost 40 percent since Sunday.

However, observers also point to other new meme coins where investors are likely to lose a lot of money. MUNGER, for example, was only launched on November 28 on the anniversary of the death of legendary investor Charlie Munger. Stock market data shows the total crash of MUNGER just three days after its launch. It was a similar story with KISSINGER, a meme coin commemorating the diplomat of the century Henry Kissinger. Here, the trading volume is already at zero on day 6 after the launch.

And what actually happened to GROK? This meme coin was launched at the beginning of November as a reference to Elon Musk and the chatbot Grok. The hype is over, as the data from CoinGecko shows. Even Bitcoin’s upward trend could not change GROK’s weekly drop of almost 60 percent.

Conclusion: meme coins react diversely to Bitcoin boom

Anyone investing in meme coins should also be aware of the risks and speculative nature. Dogecoin (DOGE), one of the ten most important cryptocurrencies in the world, can follow the current Bitcoin rally, as can Shiba Inu, PEPE and Memecoin. However, other newly launched meme coins are currently failing one after the other. Meme coins are therefore by no means sure-fire successes, even in a bull market, and in a historical comparison they consistently lag behind the performance of Bitcoin.


Be the first to comment

Leave a Reply

Your email address will not be published.