Shiba Inu and Dogecoin could potentially unseat Cardano (ADA) from its top 10 cryptocurrency ranking. With the CEO of Nanse AI hinting at such a possibility, the markets' communities are clashing again.
A glance at the price charts of SHIB and DOGE shows an undeniable rally. SHIB's chart exhibits a bullish trend with a dramatic vertical climb, breaking past resistance levels with significant volume backing the price movements. This rally has not gone unnoticed, as FOMO triggers a flurry of investor interest, potentially driving prices even higher.
Dogecoin's chart reflects a similar trajectory, with the price ascending sharply and maintaining its strength above the moving averages. The 50-day moving average has been a strong support level, which could fuel further price gains if the positive momentum continues. Both charts signify the "unstoppable growth" sentiment that meme coins have managed to capture.
The surging popularity of meme coins is largely driven by community support and social media buzz rather than fundamental value, which differentiates them from projects like Cardano, known for its strong technological foundations and DeFi aspirations. Despite this, the DeFi community's skepticism toward Cardano's performance and the criticism from Nansen and others might play into the market dynamics favoring meme coins.
As meme coins rally, powered by virality and community hype, there is a nonzero chance that they could surpass Cardano's market cap, especially if the current growth trajectory continues. While this prospect may alarm some investors and delight others, it is essential to recognize the volatile and often unpredictable nature of meme coin movements, which can be as rapid in their decline as they are in their ascent.
However, the crypto market is known for its surprising turns, and while the current momentum for SHIB and DOGE is formidable, displacing a well-entrenched asset like Cardano requires sustained investor interest and market capitalization beyond a temporary rally.