After the infamous and drastic second-quarter crash, the crypto market is showing signs of recovery. A sense of optimism is washing over the volatile market in a slow but steady series of events. On Monday, August 15, certain canine-themed cryptos saw a big jump.
Ethereum is being closely watched as it will soon get an exponential upgrade. Similarly, the meme coins Dogecoin and Shiba Inu saw substantial gains. Like Ethereum, these coins are due for a makeover. Over the past five days, Dogecoin has seen a 14% increase, while Shiba has seen a whopping 40% gain. To put this in perspective, Dogecoin has dramatically outperformed Bitcoin during this timeframe.
Hayden Hughes, the head of trading platform Alpha Impact, said on Monday, “There is clear evidence that after this weekend, the investors are back.” This is a viable observation, considering that the crypto industry is currently valued at $1.2 trillion. On June 19, the market was valued at $875 billion.
Other contributing factors include lower inflation numbers in the United States, generating hopes of the Federal Reserve slowing down climbing interest rates. This news also comes on the horizon of Ethereum’s long-awaited Merge upgrade. This new iteration of the blockchain is estimated to go live around September 15.
Some insiders have cautioned that this is not a strong market indicator since these meme coins are only supporting players compared to Ethereum or Bitcoin, which are considered the “kings” of digital assets. Cici Lu, the CEO of Venn Link, calls the uptick in demand “a liquidity pocket that is attractive to new and current investors.”
Hughes also suggested the activity be taken with caution. He added, “We need to wait and see if substantial institutions pick up this gain for trading during the week.”
At the time of writing, Dogecoin is valued at $0.0767 while Shiba Inu is sitting at $0.0000168.
In just a few weeks, between May and June of 2022, the crypto market lost approximately $1 trillion in value. The fall of Bitcoin was especially catastrophic. In November 2021, the crypto flagship was at an all-time high of $60,741. On August 1, 2022, it was valued at $22,706.
Amateur investors were the hardest hit by the crash. Meanwhile, veteran investors saw the situation as an opportunity to make significant purchases in hopes of buying low to sell high.