Are traders ditching DOGE for SHIB?

• DOGE tumbled 12.45% over the last month while SHIB grew by 4%.
• More traders were bearish on DOGE as of this writing.

The enigmatic world of memecoins continue to excite, shock, and keep participants interested in this category of cryptos on the edge of their seats.

But the original memecoin Dogecoin [DOGE], ironically, has seemed to have gone off the boil over the past year.

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Is DOGE losing out?

Though still the highest-ranking memecoin in terms of market capitalization, DOGE’s growth in 2023 was nothing extraordinary, to say the least.

According to CoinMarketCap, the first “dog coin” could only register gains of 1.06% in the past year. In comparison, the Shiba Inu [SHIB] token, which was inspired by DOGE itself, saw slightly better gains of 3.62%.

A more recent assessment clearly highlighted the difference in the trajectories of the two memecoins. DOGE tumbled 12.45% over the last month while SHIB managed to grow 4% in the same time period.

SHIB becomes the preferred memecoin

The trading activity further reflected waning demand for DOGE.

According to AMBCrypto’s analysis of Santiment data, DOGE’s daily USD volumes collapsed 39% from the previous month. To the contrary, the USD worth of SHIB transactions increased 2% over a month’s time.

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Similar trends came to light after AMBCrypto analyzed the on-chain activity. Since the start of 2024, DOGE’s daily transaction count nosedived 68% as of this writing.

On the other hand, transactions on the Shiba Inu ecosystem rose 8%.

Source: Santiment

Lack of utility hurting DOGE?

AMBCrypto recently reported on how DOGE’s over dependence on tech czar Elon Musk and his social media endorsements have hindered its growth.

Other memecoins like Shiba Inu and even Bonk have worked on developing meaningful real-world use cases. DOGE, on the other hand, has remained rather confined around Musk.

While this link paid off during the bull market, there was a clear decoupling between Musk’s posts and DOGE’s price behavior during the bear market.

Read DOGE’s Price Prediction 2023-24

The underwhelming performance in the spot market reduced DOGE’s speculative interest as well. According to CoinGlass data, more traders were betting on DOGE’s decline than its rise.

On the other hand, nearly 64% of all open positions for SHIB were bullish-leveraged, implying a more optimistic view.

Source: Coinglass