The Elon Musk-fueled meme coin rally appears to have finally ended.
Dogecoin/link and Shiba Inu (SHIB) has recorded significant losses over the past 24 hours, per data from Coingecko.
DOGE has lost over 12.3% in value in the last 24 hours and is trading at around $0.10, according to data from Coingecko. Despite today’s big loss, DOGE is still up 67.5% in the last 30 days.
Intense trading for the dog crypt pumped daily trading volume across multiple exchanges to $2.3 billion, a 30% jump from the previous day.
With a market capitalization of just over $14 billion, DOGE remains the eighth largest cryptocurrency. However, if the downturn continues, it could drop its rank to tier-1 blockchain Cardano (ADA).
Over $15.09 million in Dogecoin futures positions were liquidated in the last 24 hours, per data from Coinglass. Most of the liquidations (~80%) came from blown long trades.
Dogecoin liquidations, green bars indicate blown long trades. Source: Coinglass
SHIB supports DOGE
In the past, SHIB and DOGE price actions have strongly correlated. Today is no different.
The second largest meme coin, Shiba Inu (SHIB), is also down 8.5%, erasing the coin’s monthly gains over the past 24 hours, per data from Coingecko.
At press time, SHIB is changing hands at about $0.00001.
Despite the price drop, SHIB enjoyed a modest 8.95% increase in daily trading volumes to $459 million over the past 24 hours.
Nearly 98.03% of SHIB long trades worth nearly $1.15 million have been liquidated in the same period, data from Coinglass suggests.
With a market capitalization of just over $6.5 billion, SHIB is the 14th largest cryptocurrency.
Besides meme coins, leading cryptocurrencies Bitcoin and Ethereum has also lost almost 5% in the last 24 hours.
The primary reason behind the market-wide bearish price action is likely around growing insolvency fears for crypto exchange FTX.
If unfortunately FTX becomes another LUNA, no one in the industry can benefit from the accident, including Binance. Both customers and regulators will lose some confidence in the entire industry. I hope CZ will consider stopping selling FTT and enter into a new agreement with SBF.
