Dogecoin vs Shiba Inu: Which Memecoin Will Dominate June?
Dogecoin and Shiba Inu were fairly evenly matched on comparative metrics. Shiba Inu was stuck in a range, while Dogecoin could pose risks to holders in the short term.
The memecoin market plummeted last week after Bitcoin [BTC] hesitated to break through the $70k resistance level.
CoinMarketCap data shows that among the top five memecoins by market cap, only dogwifthat [WIF] had a positive price performance last week.
Dogecoin [DOGE] and Shiba Inu [SHIB] saw similar price performance, but the latter traded within a range. The former was more volatile in May, but had a slightly more consistent uptrend.
Looking ahead to June, which token is likely to deliver better returns?
Comparing Social Metrics
Weighted sentiment gave an idea of whether participation in the social networks was bullish or bearish. The 3-day interval values for DOGE and SHIB were -0.72 and -0.74 respectively. This showed that the engagement was equally bearish for both currencies.
However, looking at the trends, we can see that Dogecoin has been consistently bearish since April. Meanwhile, Shiba Inu has been more positive in the last two months. This could be due to Dogecoin experiencing higher volatility.
DOGE’s social dominance was 0.927% compared to SHIB’s 0.339%. This is also understandable as Dogecoin is the face of the meme coin sector and has been for years.
According to this Metric, Dogecoin Could Soon Witness Increased Volatility
On May 30th, DOGE’s inactive circulation experienced a massive spike. This indicated a flood of tokens moving between wallets and is generally a sign of selling pressure.
DOGE prices have only fallen 3% since then, and at press time the recovery was well underway.
However, the potential wave of selling could be a cause for concern.
On the other hand, Shiba Inu has seen less token movement on the chain over the past two months, highlighting a stronger HODL mentality.
Comparing MVRV ratios, we see that DOGE has been more negative than SHIB over the past six weeks. This meant that DOGE holders were exposed to greater losses, especially in early May.
On May 30th, DOGE’s inactive circulation experienced a massive spike. This indicated a flood of tokens moving between wallets and is generally a sign of selling pressure.
DOGE prices have only fallen 3% since then, and at press time the recovery was well underway.
However, the potential wave of selling could be a cause for concern.
On the other hand, Shiba Inu has seen less token movement on the chain over the past two months, highlighting a stronger HODL mentality.
Comparing MVRV ratios, we see that DOGE has been more negative than SHIB over the past six weeks. This meant that DOGE holders were exposed to greater losses, especially in early May.
It was SHIB holders who suffered the largest unrealized losses more recently.
Overall, the social metrics were quite similar. MVRV ratios showed that DOGE holders were more willing to sell when the metric exceeded zero.
Dogecoin may experience higher volatility than Shiba Inu, combined with higher inactive circulation.
By Leonardo Perez