Meme Coins Bleed Out: DOGE & SHIB Down 8-9% in 24 Hours

• The last seven days saw both Dogecoin [DOGE] and Shiba Inu [SHIB] register double-digit losses as the market FUD triggered by Silvergate’s collapse continued to spread.
• According to data from CoinMarketCap, the market cap of top meme tokens fell by 9% in the 24-hr period while the trading volume surged 23.86%.
• Data from Santiment showed that SHIB and DOGE whale transaction numbers more than doubled over the last seven days, indicating a selloff was underway.

FUD Triggered Market Selloff

Both Dogecoin [DOGE] and Shiba Inu [SHIB] registered double-digit losses in the last seven days as FUD triggered by the collapse of crypto-friendly bank Silvergate continued to engulf the broader cryptocurrency market. According to data from CoinMarketCap, the market cap of top meme tokens fell by 9% in the 24-hr period while the trading volume surged 23.86%, indicating an intense sell off was underway. At the time of writing, DOGE, which is the largest meme coin by market cap, was down 8.24% in 24 hours while SHIB fell by over 9%.

Silvergate Bank Collapse

Shares of crypto-related companies and coins came crashing down after Silvergate Capital Corp announced that it will shut down its operations and voluntarily liquidate. This development initiated a wider market downturn with Bitcoin [BTC] plunging below $20,000 for first time in two months. The contagion spread to other cryptocurrencies as well and meme coins were among biggest losers with SHIB registering double-digit losses in 7 days period.

Increased Whale Transactions

Data from Santiment highlighted that SHIB’s supply on exchanges had increased steadily over past week reaching weekly high on 8 March suggesting users possibly selling off their holdings. Number of whale transactions for SHIB more than doubled over last seven days implying even bigger addresses dumping SHIB . Additionally number of supply held by top addressees also increased though not very significant expansion . Similarly DOGE also saw number of whale transactions proliferate by over 60% in 24 hour period .

Short Positions Increase

Sentiment turned negative as investors increasingly took short positions against memecoins like DOGE and SHIB . Data from Coinglass showed number short positions against long positions increasing considerably for both coins .

Cheer Amongst SHIB Army

Despite gloom surrounding cryptos , members amongst ‘SHIB army’ had something to cheer about as burn rate skyrocketed due to increased selling activity . With Silvergate collapse leading crypto markets into huge downturn it remains be seen how these memecoins like DOGE and SHIb recover or if they can hold their own amidst current bearish sentiment .