At the time of writing, Dogecoin’s price had dropped by 12% over the last 24 hours. While DOGE did not drop because of them, it’s worth noting that the last few days have also seen the launch of several copycat projects on other ecosystems like Binance Smart Chain and YFI.
For what it’s worth, DOGE is also Proof of work. The Shiba Inu coin, another copycat project that was recently launched, is being hailed as a “Dogecoin killer,” especially on the back of its offering 1900% returns in a week. WOOFY on YFI, for instance, led the altcoin to its ATH above $88,000.
What’s more, YFI’s rally alongside other top DeFi projects started DeFi Summer Round 2, and DOGE’s copycat projects are the ones driving this rally, among other top factors.
DOGE social volume vs price || Source: Lunarcrush
The social volume for DOGE has risen after a drop from the peak on 9 May 2021. The increase in social volume is a key factor in the launch of similar projects. Following DOGE’s price rally, and the launch of similar projects, altcoins are likely to recover from the current price drop. Among similar projects, SHIB has high social volume and has dominated Crypto-Twitter lately. Following a nearly 30% drop in price, SHIB’s price can be expected to recover from the plunge with a further increase in social volume and inflows.
Currently, the available “dogs” or meme-coins across exchanges include KISHU, SAMO, BSHIBA, KEANU, and ASS. These projects are nearly enough for a virtual zoo portfolio that offers a high short-term ROI. The social volume, on-chain sentiment, and trade volume are the key factors driving their price rally.
Additionally, short-term ROI is currently the biggest driver of meme-coin frenzy. Another factor that has had an impact is their high market capitalization and their recent ATHs. Alongside DeFi projects’ rally, retail traders are likely to make exits from meme-coins post the short-term gains being realized.
Short-term ROI DOGE || Source: Messari
The key question here is this – Will these projects survive 90 days, 6 months, or a year? Is the current price rally the end of meme-coins as we know them? For the meme-coin rally to extend, consistent demand across exchanges, increase in trade volume, and consistently high short-term ROIs are key. Though the price has plunged for most altcoins, recovery will remain likely, especially since 87% of DOGE HODLers are currently profitable.
Source: IntoTheBlock
The currently profitable HODLers are likely to continue HODLing, supporting the bullish sentiment, and resisting the selling pressure. In any case, DOGE copycat projects and the expectation of high short-term ROIs are likely to drive this rally.
