Memecoins
Dogecoin, Shiba Inu prices take advantage of Elon Musk’s latest post, but…
- Musk’s tweets fueled bullish trends, particularly in Dogecoin, Shiba Inu and PEPE
- The volatile nature of Memecoin has led many to question its long-term viability
Within a day of Ethereum [ETH] approval of spot exchange traded funds (ETFs), Dogemoneta [DOGE] AND Shiba Inu [SHIB] dropped significantly in the rankings, dropping 5% and 65% respectively.
However, just when it seemed like these memecoins were out of use, tech mogul and meme lover Elon Musk saved them once again.
Musk: the memecoin lover
In a recent post on X, Musk paid homage to Kabosu, the original dog behind the Dogecoin meme, which inspired the creation of DOGE in 2013.
Source: Elon Musk/X
Musk’s post triggered a bullish trend for both memecoins. DOGE, at the time of writing, was up nearly 5%, while SHIB was valued at $0.00002488 after rising 4.5% in 24 hours.
Meanwhile, Dogecoin social volume and dominance data provided by Santiment confirmed that Musk’s tweet contributed to an increase in its dominance and social volume. However, this surge was short-lived as both social dominance and volume have declined significantly since then.
Source: Santimento
This is not the first time!
Elon Musk’s tweets have consistently had a significant influence on Dogecoin, a trend evident since 2020.
In 2024 alone, Musk’s endorsement of DOGE was a key factor contributing to its impressive 68% year-to-date surge.
In addition to Dogecoin and Shiba Inu, Musk also tweeted about Pepe [PEPE], a frog-themed cryptocurrency, on March 15. This tweet on X piqued the curiosity of his followers by highlighting Musk’s impact on the cryptocurrency market. As expected, the tweet led to a notable 23% increase in the memecoin price, followed by a significant drop.
Why are memecoins so speculative?
This raises the question: why are memecoins so sensitive to simple tweets and endorsements?
Memecoins are essentially real-world jokes tokenized on the blockchain, thriving on speculation just like regular internet memes. Similar to traditional memes, their value skyrockets as chatter in online communities increases.
Therefore, the long-term sustainability of memecoins is uncertain as they are highly volatile compared to other cryptocurrencies. A single tweet from a key influencer can quickly move their prices, making them even more unpredictable than other cryptocurrencies.
Interestingly, this time Musk’s tweet not only impacted DOGE, SHIB, and PEPE, but also contributed to an overall increase in memecoin market capitalization. At the time of writing this article it stood at $64.3 billion, reflecting a change of +2.7% in the last 24 hours, as per CoinGecko.