The crypto market has become an enormous industry with a trillion dollars in market capitalization and millions of crypto tokens to trade into. This has offered great profit-making opportunities, but the volatility has also kept the market humbled with consistent drops. Today is one such day when volatility has spiraled many cryptos, including the two most popular meme coins, Shiba Inu and Dogecoin. In this, the Dogecoin price has plummeted by 5.45%, whereas the SHIB’s price is down by a 3.3% drop.
3 Factors Bringing The Shiba Inu and Dogecoin Price Down
This Shiba Inu and Dogecoin’s drop has confused the netizens as both these popular meme coins have their share of demanding factors. Dogecoin’s trail map update has spoken of increasing the block speed by ten times, whereas the SHIB burn has surged by 2000%. However, despite that, both the tokens are down today, and there are three most prominent reasons behind this.
1. Profit Taking & Capital Rotation In the Market
DOGE and SHIB are among the oldest meme-themed tokens and have maintained a great share of dominance, with the highest market caps in the category. However, with the introduction of new tokens, investors are moving their funds to new ones to gain better profits or find better stability in the versatile market.
In recent, the TRON-based tokens have dominated the market due to their rising hype. Going with this hype, one TRON trader made $7 Million with a simple investment of less than $300. It has caused a significant drop in the DOGS and SHIB’s performance, and the lack of bullish factors has worsened it.
2. Historic September Slump Affected Dogecoin Price
There is an overall drop in the crypto market, where user sentiments have turned to fear in the last few days. This indicates the user’s concern about placing new trades in the market or taking any risks. Moreover, this current decline is part of the September slump, seen almost every year in this month.
The Rekt capital reports revealed that the Bitcoin growth is already in a 6.19% drop within only seven days, confirming the Bitcoin September loss. The report also states how the single-digit downside has been constant for nine years since 2013.
#BTC
Bitcoin is down -6.19% for the month of September
This approximately matches the September single-digit downside experienced in 2022, 2021, 2020, 2018 and 2017
This downside is not out of the ordinary$BTC #Crypto #Bitcoin pic.twitter.com/RdEkJNNv9L
— Rekt Capital (@rektcapital) September 6, 2024
This downside is not only in Bitcoin, as the rest of the altcoins follow the same trend due to Bitcoin’s dominance in the market.
3. Bitcoin Price Crash
Following the Rekt capital report, the Bitcoin price has been struggling in the market for days. The token is presently at $54,252.53 after an 8% drop over the week. However, this is still better, as the token dropped to $53K earlier in the day. More importantly, at the same time, the Dogecoin price has declined to $0.0892, currently at $0.0937, whereas the Shiba Inu price dropped to $0.00001242, currently at $0.00001297.
The entire crypto market is declining, including SHIB and DOGE. It is due to Bitcoin’s ripple effect, where every time BTC puts a poor performance, the rest of the market follows. And now, at the time of reporting, BTC price has recovered, and the same is happening in these meme tokens.
Final Thoughts
The ongoing Shiba Inu and Dogecoin price drop is part of the ongoing crypto market crash, which is fueled by the recent US nonfarm payroll data. Moreover, the Bitcoin price crash and the major fall in the US stock market have made user sentiments turn to fear, restricting the performance of the altcoins. This drop has also confirmed the historical September slump, which has happened nine times in the last 12 years.
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Pooja Khardia
With years of love for reading and 5 years of content writing experience, I’m here, working on my favorite writings about cryptocurrency. I’m actively looking for trending topics and informational statistics to curate the best content pieces for crypto enthusiasts. Staying updated with trends and learning the basis and advancements of this field is the best part of the day.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
