- Data from a Currency.com report suggests that DOGE/USD is starting to lose momentum as traders turn risk-averse at an increasingly rapid pace.
- The number one ranked memecoin lost as much as 57% in trading activity during June 2022.
- Furthermore, it seems that BTC Hodlers might be selling while ETH and LTC retain top positions in trading volume.
According to a recent Currency.com report, the trading activity across “meme” tokens appears to be collapsing. The growth of the memecoin sector was largely driven by Dogecoin in the former years but was further expanded by Shiba Inu in 2021.
The growth of these two tokens was truly exponential which allowed DOGE to reach an all-time high market cap value of over $80 billion and SHIB to reach as much as $41 billion.
In a dramatic turn of events, it seems that traders have abruptly stopped trading Dogecoin, the memecoin that is largely considered to be the most popular in the sector, on Currency.com.
According to the data, DOGE/USD used to be one of the top-traded coins in May after BTC, ETH, and LTC. The new data from Currency.com suggests that trading volumes for DOGE/USD dropped by a whopping 50% in June, down enormously from the previous month.
In that same period, the total number of traders exchanging DOGE/USD fell by 57% on the platform.
It seems that traders are seeing a bottom for DOGE and are looking for safer options during the interim. Steve Gregory, CEO at Currency.com, had the following statement on the issue;
“This may suggest that traders are seeing a bottom for DOGE and favoring the safety of larger market cap coins like Bitcoin (BTC) and Ethereum (ETH). As we approach the end of June, $2.5B in open interest of BTC options expired last week bringing volatility across the asset class. All eyes will be on the next meeting of the Federal Reserve and with current indications pointing to a possible increase in the interest rate, it’s likely that risk assets like cryptocurrency could continue to slide. Typically, crypto is the first to sell-off, followed by the wider global equities markets.”
Unfortunately, it seems that the maximum pain might still be incoming for any remaining DOGE holders.
ETH & LTC remain on top but are BTC Hodlers losing faith?
Furthermore, Currency.com also reported that BTC/USD, ETH/USD, and LTC/USD continue to hold on to the top three most traded cryptocurrencies listed on the exchange.
Although BTC and ETH are the top two ranked cryptocurrencies by market cap value, LTC is still sitting in the 20th position, so it’s quite surprising to see it on the list. Additionally, this is the second month running that these three coins have managed to hold the top three positions by trading volume.
Adding further to the drama, it appears that there is an increase in the selling activity from BTC Hodlers. This could suggest that BTC supporters are starting to grow tired of the current bearish market conditions and are starting to lose faith as additional interest rate hikes are still on the table later in the year.
However, it could also be an indicator that traders are starting to gear up for the Ethereum merge on the horizon, favoring holding ETH instead of BTC.
Gregory had the following to say on the situation;
“With the Ethereum ‘merge’ just a few months away, and a major daily supply drop in ETH issuance, we see these as possible catalysts that pulls the asset class out of its downward trend,”