Digital asset-focused research firm Delphi Digital has revealed that historically dog coins, meaning cryptocurrencies inspired by the popular Shiba Inu meme, have historically been “a pretty good indication of an overheated market.”
As part of a tweetstorm Delphi Digital published, it mentioned that total value locked in Ethereum decentralized finance (DeFi) protocols has surged to its highest level ever above $160 billion
The firm pointed out that from April to May of this year and in early September dog coins were “all the rage and quickly crated as crypto markets cooled off or saw a fairly deep de-leveraging.”
Several dog coins have been surging over the last few months, with Dogecoin (DOGE) and Shiba Inu (SHIB) leading by market capitalization at $30.73 billion and $20.56 billion respectively. Shiba Inu’s performance has been so astounding it’s up about 90% in the last week, helping it become the 11th most valuable cryptoassets by market capitalization.
The cryptocurrency’s price has moved up over 700% in the last three months over a retail trading frenzy that was bolstered by the cryptocurrency’s massive circulating supply being confronted with significant token burns.
SHIB’s trading volume has surged to rival that of Ethereum after a supporter asked Tesla and SpaceX CEO Elon Musk, who has been a vocal supporter of rival meme-inspired cryptocurrency Dogecoin ($DOGE) how much SHIB Musk was holding.
Musk replied with one word, “none,” leading to a significant crash in the price of the cryptocurrency, which at one point was down more than 10%. Musk was then asked about another meme-inspired cryptocurrency, Floki Inu, to which he replied he only bought BTC, ETH, and DOGE.
Some token pools on Shiba Inu’s ShibaSwap exchange also implemented a burning system to destroy tokens and permanently remove them from circulation. According to available data, SHIB whales have been influencing the cryptocurrency’s price, as when whale transactions above $100,000 occur, prices rise.
As recently reported, the floor price for the native non-fungible tokens (NFTs) of the Shiba Inu ecosystem is now above 1.2 ETH, after over $20 million worth of these tokens were traded on the popular decentralized NFT marketplace OpenSea.
According to the platform’s data, 3,300 owners of the Shiba Inu NFTs, known as Shiboshis, have already traded over 5,000 ETH worth of the tokens after these were launched earlier this month.
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