- Dogecoin accounts for 26% of Robinhood’s sales in Q22021 as traders aggressively bought the meme coin.
- Both Dogecoin and Shiba Inu have consolidated over the past two weeks.
- Analysts predict another meltdown in Shiba Inu-themed meme coins.
- The correlation between Dogecoin and Bitcoin is increasing and DOGE is preparing for a 30% decline.
The fact that a handful of wallet addresses hold almost 91% of all Dogecoin in circulation and the high level of centralization of the Shiba-Inu cryptocurrency is cause for concern among analysts and traders.
Dogecoin and Shiba Inu are preparing for a nearly 30% price drop
Shiba Inu-themed cryptocurrencies have seen their price drop in the past two weeks. In May 2021, nearly $ 1 trillion was subtracted from the total market capitalization of cryptocurrencies.
Since the bloodbath, altcoins and layer 2 scaling solutions have posted double-digit gains in contrast to the meme coins SHIB and DOGE. SHIB and DOGE are over 60% away from their all-time highs in May 2021.
In the second quarter of 2021, Robinhood, the commission-free stock trading and investment platform, announced that DOGE accounted for 26% of its trading volume. Despite aggressive DOGE purchases from traders on Robinhood, the Meme Coin’s wealth distribution appears to be one-sided as 91% of the altcoin circulating supply is held in whale wallets (wallets with 100,000 to 1 million DOGE). Whale wallets make up less than 1% of the total addresses on the DOGE network.
Dogecoin relative supply held tapes.
Analysts and dealers strongly criticize the centralization of the DOGE offer. This criticism probably explains a declining interest among traders in Shiba Inu-themed crypto.
In the case of Shiba Inu Coins, the community is waiting for a listing on the Coinbase and Robinhood exchange platforms. None of the exchanges made an official announcement.
The developers behind the cryptocurrency implemented a burning mechanism in response to the traders’ request. The implementation of Burn was expected to drive the price of the Altcoin higher, however the SHIB price has continued to fall since August 22nd. SHIB has seen prices drop nearly 14% over the past two weeks and consolidation is expected to continue.
FXStreet analysts have predicted that the price of the altcoin is preparing for a 30% plunge as it lost crucial support earlier this week. The next price target is $ 0.22.
