Today saw a decline in the meme coin market, with prices for critical participants like Dogecoin and Shiba Inu plummeting by more than 3%. Notably, the decline coincides with a downturn in the larger cryptocurrency market, which has sparked speculation about possible causes.
Furthermore, speculation in the market has been stoked by Dogecoin and Shiba Inu’s abrupt retreat after experiencing upward momentum on June 26.
Dogecoin’s Price Is Dropping: Why?
When considering the overall state of the market, participants are holding off on placing additional wagers in the digital asset field. Furthermore, before placing their bets on Dogecoin, investors may be looking for more clarity due to the highly unpredictable nature of the cryptocurrency market as a whole, let alone the meme coin industry.
Notably, market sentiment seems to have been affected by the recent hawkish remarks made by U.S. Federal Reserve officials regarding the policy rate plans. The market raised concerns when the officials stated that it is too soon to think about lowering interest rates in 2024.
As of this writing, Dogecoin was trading at $0.1223, down 3.23% from its previous price. In addition, its trading volume decreased by 30% to $489.51 million, and its price peaked at $0.126. However, Dogecoin’s open demand fell 2.41% to $603.19 million, according to CoinGlass statistics, suggesting that market demand for the top meme coin is declining.
Retreat of Shiba Inu Coins
Shiba Inu Coin’s performance today may have been influenced by the more general market patterns covered for Dogecoin. Apart from that, though, a few more things could have affected the price of SHIB today.
Specifically, investors’ attention has been drawn to Binance’s announcement yesterday on delisting TUSD pairs for Shiba Inu, among other things. Major cryptocurrency exchanges like Binance typically make announcements that have a dual effect on the value of the cryptocurrencies.
The SHIB burn rate, on the other hand, remains optimistic despite the decline in the values of both Dogecoin and Shiba Inus, demonstrating the community’s ongoing support for lowering the total supply. To put things in perspective, the burn mechanism contributes to a decrease in the total supply, which raises the price of cryptocurrencies.
At the time of writing, Shiba Inu’s price was $0.00001717, down 3.13% from yesterday, and its trading volume had dropped 37% to $193.65 million. Over the past day, the meme coin has fluctuated between a high of $0.00001772 and a low of $0.00001705. In addition, Shiba Inu’s Open Interest fell 8.25% to $32.73 million, demonstrating a similar situation to Dogecoin’s.
