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Source: The Financial Express
March 15, 2022
End of dog days? Dogecoin, Shiba Inu out of top 10 cryptocurrency list. What should investors do?
DOGE, SHIB Price: Popular dog-themed crypto meme tokens like Dogecoin (DOGE) and Shiba Inu (SHIB) are out of top 10 list of cryptocurrencies by market capitalisation for many weeks now. On Tuesday (March 15, 2022), DOGE and SHIB coins were trading at $0.1132 and $0.00002191 respectively at the time of writing this report, as per CoinGecko data.
In 2021, both these dog-themed coins made news by multiplying investors’ money and touching new all time high prices. However, amid the ongoing bear market, both DOGE and SHIB are way below the prices they commanded at the height of their popularity last year. They are no longer among the top 10 crypto assets by market capitalisation.
DOGE is currently ranked 13th while SHIB is ranked 15th in terms of market capitalisation, according to CoinGecko.
In the last one month, DOGE price has dipped 21.7% while SHIB price is down by 24.9%.
Since 1st January 2022, there has been approximately 31.7% fall in dogecoin price while Shiba Inu price is down by approximately 35.5%.
Does the falling prices mean the days of these dog-themed meme coins as crypto investment options are getting over? Experts have varied opinions on this issue.
According to Darshan Bathija, CEO and Co-Founder of Vauld, considering dogecoin or Shiba inu for investment would depend on investor’s risk preference as both of them are extremely volatile cryptos.
“Dogecoin and Shiba Inu are extremely volatile cryptos that saw large price swings in 2021. This led to their increase in market cap and entry into the top-10 list. However, since then, they’ve been overtaken by utility blockchain tokens,” Darshan Bathija told FE Online.
DOGE, SHIB top traded crypto in India?
According to Rajagopal Menon, Vice President, WazirX, both the dog-themed memecoins continue to be among the top-traded crypto on Indian exchanges. “SHIB and DOGE continue to be among the top-traded crypto across Indian crypto exchanges. In fact, during instances of bearish market movement, we’ve witnessed more people willing to buy SHIB than to sell.”
Experts say that one should look at each crypto project carefully before making an investment. For better returns, it would be good to have a diverse set of assets in one’s portfolio.
“DOGE and SHIB are very popular meme coins with a high degree of volatility. We need to look at the crypto market as a large ecosystem with diverse crypto assets. Each crypto asset has a unique trait and investors can create a balanced portfolio by carefully selecting multiple assets based on their risk appetite. Bitcoin and Ether are very expensive assets and might be beyond the reach of some retail investors, so meme coins and altcoins lower the entry barrier for entry into the crypto market and offer a low-cost investment vehicle to crypto enthusiasts across the globe,” Charles Tan, Head of Marketing at Coinstore said.
Darshan Bathija suggested that it is important to determine the volatility and reliability of a crypto asset before investing. “My advice to investors is to determine what level of volatility they’re willing to handle before investing in such meme coins.* Investing in the right digital asset can be tricky. What needs to be taken into account is the project’s reliability. When it comes to digital assets, one needs to look at the collective trust a coin’s community places in the project.”
“Other features that contribute to a project’s USP include its supply conditions and its Raison d’etre. Whether the coin’s supply is finite or not can determine its worth. Every project tries to solve a bigger problem, and this narrates the coin’s reason for existing in the market. Other points to research include transaction cost, transaction speed, divisibility. Do your research on all these points before you decide to buy an altcoin,” he added.
The suggestions/recommendations around cryptocurrencies in this story are by the respective commentator. Financial Express Online does not bear any responsibility for their advice. Please consult your financial advisor before dealing/investing in cryptocurrencies.