New data from market intelligence firm Santiment points to a possible correction for the popular dog-themed memecoins Dogecoin (DOGE) and Shiba Inu (SHIB).
In a new thread on the social media platform X, the crypto analytics platform say that the pair of memecoins has the highest discussion numbers they have had in five months, indicating that investors may soon shift capital to other crypto projects.
According to Santiment, traders are flocking to DOGE and SHIB due to the fear of missing out (FOMO), which could lead to the altcoins printing local tops.
“As the crowd anticipates Bitcoin’s $70,000 breakthrough soon, traders are doubling down on highly leveraged speculative meme coins, with their discussion rates at a five-month high.
Meanwhile, second layers such as Arbitrum and Optimism are ignored. Speculative coins can certainly keep pumping for a while longer, but historical data shows that it pays to go where the crowds aren’t looking.”
At the time of writing, DOGE and SHIB are trading at $0.142 and $0.000019 respectively.
As for Bitcoin (BTC), Santiment says the latest bull run of the flagship digital asset is likely helped due to the increasing number of BTC whales in the month of October.
“Bitcoin’s whales grew substantially just as its value bottomed out around $59,000 on October 10. Between October 10 and 13, there was a net increase of +268 additional wallets holding between 100 and 1,000 BTC, which likely played a role in this bull rally.”
Bitcoin is trading at $68,220 at the time of writing.
The analysis concludes with the proprietary assets of the peer-to-peer payment network Litecoin, the market insights company say the latest increase in LTC can be attributed to a spike in on-chain transaction volume and retail interest.
“Litecoin is having a nice mini-run, jumping above $73 for the first time since July. This is the first medium-sized breakthrough of Bitcoin and altcoins since the spring.
Two key factors are: LTC’s continued increase in on-chain transaction volume, which nearly surpassed $4 billion in a single day [and] a rise in interest in LTC retailers, due to the continued development and initiatives of the [original] network.”
Litecoin is trading at $74.80 at the time of writing.
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Generated image: Midjourney