Tokens styled after the Shiba Inu dog breed could be poised for sale after days of outperforming the broader crypto market.
On Monday, Twitter, a social media company owned by billionaire crypto advocate Elon Musk, replaced its popular blue bird logo with that of Dogecoin’s Shiba Inu mascot. Dogecoin (DOGE) prices surged almost immediately – with futures markets setting a record – as some bet on increased Dogecoin usage on Twitter’s platform.
This surge caused several other Shiba Inu mem coins to jump multiples, with the sector up an average of 14%. Larger-cap tokens like Shiba Inu (SHIB) are up as much as 10%, while smaller-cap coins like Floki (FLOKI), Kishu Inu (KISHU), and Baby Dogecoin (BABYDOGE) are up as much as 25%.
Meme coins on newer blockchains also had their time. Some dog-themed tokens, such as zkDoge and zkShib on the zkSync blockchain, which went live in March, saw gains of up to 100%.
Such price jumps are unlikely to last long-term, however, as some traders warn that such moves do not indicate a broader trend.
“We don’t think this indicates a long-term bull run. Quite the opposite,” Guilhem Chaumont, CEO of crypto trading firm Flowdesk, said in a Telegram message, Bitcoin goes through a bull run, then big altcoins pump, and finally small-cap tokens.
“With bitcoin enjoying a relatively stable uptrend, the rise of meme coins would signal the third phase, the end of the cycle. But there is no need to overinterpret such momentary price changes,” Chaumont said.
Bonnie Cheung, Head of Strategy at crypto developer Sending Labs, shares this assessment. “Sentiment for meme coins is not new, and that means there is high potential for growth to slow down as usual in a few days,” Cheung said.
There could still be long-term growth for these tokens if fundamental characteristics strengthen in the coming months.
“Shiba Inu, for example, is gaining additional traction with the adoption of Shibarium, its Layer 2 protocol built on top of the Ethereum blockchain. Twitter and the payments world’s recognition of Dogecoin is also growing, and these trends may help it see more sustainable growth over the long term,” noted Cheung.
Meanwhile, some suggest that Twitter’s move could pave the way for mainstream adoption of crypto.
“Musk’s supportive tweets and the recent decision to add the Dogecoin logo to Twitter help keep both DOGE and SHIB in the public eye,” said Kadan Stadelmann, chief technology officer of blockchain network Komodo, in an e- Mail to CoinDesk.
“Regardless of supporting meme coins or not, it’s impossible to deny that Musk is driving mainstream crypto adoption and generating media attention that otherwise wouldn’t exist. This is certainly a positive outcome for the entire crypto space,” Stadelmann added.