Meme currencies and tokens such as Dogecoin and Shiba Inu underpinned much of the conversation around the cryptocurrency market boom earlier in the year — but when the market soared in May, their respective prices fell faster and faster than most contemporaries. However, with the market currently bullish, these volatile assets are rising faster than many others.
The price of Dogecoin is currently up 27% from last week, according to CoinGecko, currently at a price just above 26 cents per currency. It was slightly higher over the weekend, reaching 27 cents on Saturday — the highest price seen since late June. Compare that to a 16% increase in the value of Bitcoin last week, as well as 24% for Ethereum, the latter of which was apparently boosted by the release of the hard fork network update last week.
Even at this level, DOGE’s price is a whopping 64% off its highest price, above $0.73 set in early May, before the entire market crashed and fell into a month-long slump. . Still, the price of DOGE has risen dramatically since the beginning of the year, when it was priced below a penny a currency before a spike in late January. DOGE is still up 4,600% in value since then, despite the sharp drop from its peak.
Shiba Inu’s recent resurgence has its own motive, however. The ERC20 token running on Ethereum has only been around for a few months, so it hasn’t garnered as much sentiment or long-term history as the Dogecoin of years ago, and it’s stalled even further: SHIB’s price is currently below 79% of record of all time established in May.
Changes at Shiba Inu
Shiba Inu’s developers tried to boost the token’s market momentum on Saturday, either burning $25,000 of the token — about 3.65 billion SHIB at the time — or removing that amount from circulation to try to raise the price of the remaining tokens. At the same time, developers burned the same dollar amount of the accompanying LEASH token and launched new pools of liquidity on the decentralized exchange ShibaSwap (DEX).
Quickly, the price of SHIB jumped more than 25% in a matter of hours to $0.00000861 on Saturday night, the highest level seen since early July. Even at the current price of $0.00000775, Shiba Inu is up 24% from last week.
Burning large amounts of tokens is part of the SHIB philosophy. The project was launched with 1 quadrillion SHIB tokens minted, but then the developers sent about half of those tokens to Ethereum co-creator Vitalik Buterin’s wallet and claimed they were “burned”, believing he would never touch them.
Instead, Buterin donated about $1 billion in SHIB to an Indian relief fund COVID-19 in early May and burned the rest of the chips — about $6.74 billion — causing the price of SHIB plummeted about 50% soon after. The cryptocurrency market also crashed at this time, apparently exacerbating the SHIB’s decline and leading to a large loss in value in recent months.
It remains to be seen whether these meme-inspired cryptographic assets maintain this latest price increase. Still, DOGE and SHIB holders who have faced especially tough market declines in recent months should be delighted to see any kind of turnaround.
*Translated and edited by permission of Decrypt.co