Meme Token Economy Suffers After Crypto Market Dip, DOGE and SHIB Market Caps Lose Billions

The crypto meme token market economy, valued at $47.2 million at the time of writing, has suffered a severe hit from yesterday’s market chaos. Dogecoin (DOGE) has the largest market cap at $21.5 billion. Each DOGE trades for $0.164, or 0.00000342 Bitcoin per unit. DOGE has fallen 37.7% in the past month but dogecoin has risen 4,863% over the same period. Sunday, December 5th, there was $1.4 billion in global DOGE trades. Binance is the most active dogecoin trading platform.

The stablecoin tether ( USDT), commands the majority of dogecoin’s trades today. USDT captures 75.79% Sunday’s DOGE pairs. The USD (10.69%) is followed by BUSD (5.03%), Bitcoin (3.96%) and EUR (2.05%). This weekend, 1.2% of all DOGE pairs are held by the Turkish lira (TRY).

Binance is not the only active dogecoin exchange on Sunday. Huobi Pro and Okex are also available. Bittrex and Kraken are also available. The Block stats show only 55% DOGE holders making money at the current price. Today’s concentration of large holders is 60%. In the past seven days, there were $20.33 billion in transactions worth more than $100K in DOGEcoin.

Shiba Inu Drops 9% This Week, 59% Below the Crypto Asset’s All Time High

Shiba Inu (SHIB), is the second-largest cryptocurrency meme asset. This week, SHIB has lost much more than DOGE. SHIB has fallen 9.7% and 27.6% in the last 30 days. However, year-to-date gains are quite different as SHIB has risen a staggering 56,175,642%.

SHIB remains at 59.5% below the crypto asset’s record $0.0000861616 on October 28. SHIB, which has a market capital of $19.6 billion, is currently the 13th largest cryptocurrency asset. Global SHIB trade volume is currently $2.3 billion at the time of writing.

Similar to DOGE’s trading platform, Binance is SHIB’s most popular exchange on Sunday. Volumes from Huobi Pro and Okex are closely following Binance’s SHIB market. With 41.9% of all SHIB trading pairs, Tether ( USDT) ranks as the top trading pair. The USD (23.51%), BUSD (19.63%) and TRY (9.88%) follow.

58% of SHIB owners are still in profit, and 78% of large holders are currently in profit. According to Into the Block statistics, transactions exceeding $100K in the past seven days have generated approximately $4.93 billion of SHIB.

Kitty Coin, Meta Doge and Donkey See Double-Digit 7 Day Gains, Catbonk, and Fantom Doe Reduce Significant Losses

DOGE and SHIB have lost some value over the past week. Many other meme tokens also experienced losses. Dogelon mars (ELON), which lost 19.3%, and baby doge coin(BABYDOGE), dropped by 21.3% over the past week.

However, meta doge (METADOGE), donkey (DONK) and kitty coins (KITTY have all seen double-digit gains in the past seven days. Catbonk (CABO), which lost 67%, and fantom doge (RIP) who shed 59% were the biggest meme token losers this week.

Inflationary environment will push shift to Bitcoin, other cryptocurrencies

The U.S. Federal Reserve and the Bank of England, as well as the Central Bank of Norway, the Reserve Bank of Australia and the Bank of England are reviewing interest rate policies this week.

Markets will closely monitor the central banks’ moves and signals as they try to find further clues on asset-buying tapering in light of rising global inflation.

Expect the Fed to announce a taper and the Bank of England to announce an interest rate increase. Norway is likely to hint at its second annual rate hike, while the Reserve Bank of Australia could change its guidance following last week’s surge in 3-year bond yields above the target 0.1 percent.

There is a consensus growing that markets will see tightening much faster than previously thought.

This will help Bitcoin and other cryptocurrency, as they have an intrinsically deflationary asset type due to their limited supply.

As inflation concerns mount, Bitcoin is becoming more attractive as an investment hedge. Inflows from institutional investors continue increasing – bringing capital and expertise – and as providers continue meeting ongoing demand for new Bitcoin-related products.

Retail and institutional investors alike have taken note of the U.S. Federal Reserve’s statement that it does not intend to ban cryptocurrency.

It is highly likely that other cryptocurrency will be subject to more rigorous regulatory oversight. However, authorities could view Bitcoin differently due to its gold-like status.

Bitcoin is now a well-known asset class and investors should consider crypto assets in their portfolios.

The world’s way of managing money, assets, and transactions has changed with the advent of cryptocurrencies. The intrinsic value of digital currencies, which are borderless and global, is appreciated by investors in digitalised economies where businesses operate in multiple jurisdictions.

This week, central banks will be focusing on crypto investors amid a frenzy of interest rate reviews. Although prices remain volatile, they can be expected that they will be positively affected as Bitcoin and other crypto currencies are increasingly seen as a hedge against inflationary pressures.

Zimbabwean Dollar Could Collapse, Business Lobby Warns

Bitcoin.com News received a letter from Kurai Matsheza, the president of the lobby group. He explained that markets would find the aggressive approach to the foreign exchange problem unsettling.

CZI boss insists on the time-bound implementation of measures that were agreed to by all parties at a consultative meeting.

After the 2008 collapse of the Zimdollar, Zimbabwe switched to multi-currency systems in which the U.S. dollars dominated. The ZWL (Zimbabian dollar) was reinstated in 2019.

Fast two years later, however, the ZWL/USD exchange rates are now at 88:1 on official markets and more than 170:1 in parallel markets.

In an effort to stop the ZWL’s continued depreciation on its parallel market, Zimbabwean authorities launched an operation that saw law enforcement agencies arrest suspected foreign currency dealers.

The central bank also blacklisted individuals who are suspected of aggravating the Zimdollar’s problems.

The CZI boss wrote the letter to express concern about the CZI’s operation against black-market foreign currency dealers. He stated:

We should not arrest people if policies fail. Instead, we should correct policies to improve their effectiveness.

He said that arrests cause panic on the market and reduce consumer confidence in government policies.

The Dutch Auction System

Matsheza maintains that only a Dutch auction could perform the function price discovery and open the door to a liberaler exchange rate regime. As a means of controlling foreign exchange allocations, the central bank created the auction system.

However, companies and individuals complain that they have taken several months to receive their allocations. This delayed response forced many companies to look for the USD on the parallel market.

Matsheza calls for authorities to manage the auction system in the spirit of the Dutch Auction System, even though the CZI has not yet called for its end.

El Salvador Is Mining Bitcoin Using Energy From Volcanos

Nayib Bukele, President of El Salvador, announced that central American country has now been able to mine bitcoins using a volcano.

Bukele tweeted, “We are still testing and installing, however this is officially Bitcoin mining from the volcanode.” Bukele also provided a breakdown of all the mining rewards so far.

The breakdown shows that the country has produced 0.0059 BTC, which is worth $260.

After Bukele posted a video on microblogging that showed ASIC miners setting up and delivering mining equipment to El Salvador, this was done.

El Salvador became the first country in September to accept Bitcoin as legal currency despite widespread skepticism in the country and warnings from the international community about the risks for consumers.

The huge carbon footprint of Bitcoin mining has been criticized by many because most of the electricity is generated from fossil fuels. Many leaders and studies raised concerns about the carbon footprint of cryptocurrency mining, which involves creating new coins using multiple computers that consume electricity to compute complex mathematical equations.

According to the most recent data from the University of Cambridge, and the International Energy Agency, this bitcoin mining consumes approximately the same amount of energy each year as the Netherlands in 2019.

China has banned cryptocurrency-related transactions and mining activities, citing economic and energy concerns that could harm global environmental goals.

Geothermal energy is an important step towards ‘green Bitcoin mining’. Nearly 25% of El Salvador’s electricity production comes from geothermal energy.

Elon Musk , chief of Tesla, had also reversed his position on using bitcoin to buy its vehicles. Musk stated that Tesla will not sell bitcoins and plans to use bitcoin to transact as soon as the mining technology becomes more sustainable.

 

Dutch Football Club PSV Holds Bitcoin On Its Balance Sheet

PSV , a prominent Dutch football team, announced a partnership with Anycoin Direct. This became the club’s Official Partners for the next two seasons. PSV confirmed to Bitcoin Magazine recently that the BTC was still in the club’s balance sheets.

Frans Janssen was the commercial director at PSV when he signed the sponsorship deal. “As a club located in the Brainport region’s heart, we are constantly innovating and cryptocurrency fits well in this picture.

Janssen set up the Bitcoin wallets required to receive the BTC sovereignly immediately after signing the contract. Since August, the club has kept all bitcoin it received from sponsors in its own custody and plans to never sell it.

Janssen stated that Anycoin paid their sponsor rights via a number of bitcoins, which he said to Bitcoin Magazine on September 22.

PSV’s first move in Europe was shared at the MIE event, the most important marketing & insights event for the Netherlands. This fulfilled the club’s original goal of increasing Bitcoin awareness within the EU.

Lennert Vlemmings (COO of Anycoin), stated that he grew up in the area and PSV was always close to him. “As a technology firm from Brainport, we are thrilled to be working alongside PSV. The next step in cryptocurrency adoption in the EU is the payment in Bitcoin.

PSV’s innovative move will encourage other clubs to adopt Bitcoin, mainly due to game theory. Clubs without bitcoin exposure will be in a disadvantage as BTC continues to gain purchasing power against the euro. This will be evident in transfer windows, when PSV may secure better players due to the BTC’s price appreciation.

The Eindhoven Soccer Club PSV, a 108-year-old Dutch club, plays in the Eredivisie. It is the highest-tier league in Dutch football and has won 24 of its 24 championships. The club has won national trophies in addition to the UEFA Cup 1978 and the European Cup 1987-88.