Dogecoin, SHIB Plummet as Crypto Market Sheds $44B Overnight

Elon Musk-fueled meme coin rally appears to have finally ended.

Dogecoin/link and Shiba Inu (SHIB) have posted significant losses over the past 24 hours, per data from Coingecko.

DOGE has lost over 12.3% in value over the past 24 hours and trades at around $0.10, according to data from Coingecko. Despite today’s heavy losses, DOGE is still up 67.5% over the past 30 days.

Intense trading for the canine-crypto pumped its daily trading volumes across multiple exchanges to $2.3 billion, a 30% jump over the previous day.

With a market capitalization slightly above $14 billion, DOGE is still the 8th-largest cryptocurrency. If the downturn continues, however, it could drop its ranking to layer-1 blockchain Cardano (ADA).

Over $15.09 million worth of Dogecoin futures positions were liquidated over the past 24 hours, per data from Coinglass. Most liquidations (~80%) came from blown-out long trades.

Dogecoin liquidations, green bars indicate blown-out long trades. Source: Coinglass

SHIB backs DOGE

In the past, SHIB and DOGE price actions have strongly correlated. Today is no different.

The second-largest meme coin, Shiba Inu (SHIB), is also down 8.5%, wiping off the coin’s monthly gains over the past 24 hours, per data from Coingecko.

At press time, SHIB changes hands at around $0.00001.

Despite the price dip, SHIB enjoyed a modest 8.95% increase in daily trading volumes to $459 million over the past 24 hours.

Nearly 98.03% of SHIB long trades worth almost $1.15 million have been liquidated over the same period, suggests data from Coinglass.

With a market capitalization slightly above $6.5 billion, SHIB is the 14th-largest cryptocurrency.

Besides meme-coins, leading cryptocurrencies Bitcoin and Ethereum have also lost nearly 5% over the past 24 hours.

The primary reason behind the market-wide bearish price action is likely around growing insolvency fears of crypto exchange FTX.

If unfortunately FTX becomes another LUNA,nobody in the industry can benefit from the accident including Binance. Both customers and regulators will lose some confidence about the whole industry .I hope CZ can think about stop to sell FTT and make a new deal with SBF.

— Star (@starokg) November 8, 2022

Things turned sour for FTX after Binance CEO Changpeng Zhao revealed the company’s move to sell nearly $500 million of FTX’s native token, FTT.

Amid the feud, the cryptocurrency market capitalization is down 3.5% to $1.03 trillion in the last 24 hours.