The rise of meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) was one of the most striking phenomena in the history of cryptocurrency. However, as the market matures, analysts have begun to question whether meme coins can replicate the explosive growth seen in 2017 or 2021.
Has the golden age of meme coins come to an end?
Famous crypto commentator WhaleFUD believes that the glorious moment of meme coins may have passed. He pointed out that the cryptocurrency industry has matured, and the market is gradually moving away from the speculative hype cycle that once drove retail investors and traders to flock in. He expressed on social media X that expecting a glory similar to that of 2017 or 2021 is purely a fantasy, stating that this expectation is akin to believing that (Counter-Strike) 1.6 is 'the best game of all time', while in reality, the gaming industry has shifted towards more broadly participatory new projects.
WhaleFUD also mentioned that while some still expect the 'largest meme coin in history' to emerge in this cycle, he believes this hope is misguided, and meme coins may have peaked, with future market capitalization likely to continue declining.
Challenges faced by meme coins
WhaleFUD's views on meme coins reveal the issue of these currencies being overly reliant on speculation rather than sustainability and long-term value. Despite more institutional investors beginning to pay attention to Bitcoin and Ethereum, meme-based cryptocurrencies are still struggling to establish long-term practical utility, rather than just relying on viral speculation.
The technical outlook for Dogecoin and Shiba Inu has turned bearish
Recent technical analysis from cryptocurrency experts indicates that Dogecoin and Shiba Inu are facing significant bearish pressure. A report from Elliott Waves Academy on X social media states that strong selling pressure has pushed Dogecoin into a bearish channel, suggesting it could drop to $0.21, while a significant downward wave structure will further exacerbate this trend. This means that Dogecoin may face further declines before any corrective upward trend occurs.
Although Dogecoin remains the largest meme coin by market capitalization, this bearish trend also indicates that the market is taking a cautious stance on its future prospects.
Shiba Inu faces identity and technology challenges
Meanwhile, Shiba Inu is also facing challenges related to identity and technology. Cryptocurrency analyst Zach Humphries criticized the complexity and 'dilution' of its ecosystem, pointing out that Shiba Inu has deviated from the simplicity and optimism that originally attracted investors. He mentioned that Shiba Inu once centered around its native token SHIB and governance token BONE, but later expanded to multiple tokens and projects, which has left investors confused and weakened its core identity.
Although Shiba Inu still holds the position of the second-largest meme coin, Humphries believes that as competition in the crypto market intensifies and meme coins undergo internal restructuring, the price of Shiba Inu will find it harder to achieve significant increases in a market dominated by institutional investors.
