Dogecoin’s Fate: Collapse or Rebirth? ETF News and Burn Increase – Bitget
The past week saw a decline in the prices of Dogecoin (DOGE) and Shiba Inu (SHIB), with DOGE dropping by 9.5% to $0.158 and SHIB decreasing by 10.5% to $0.0587. Despite these losses, there are underlying factors that could potentially drive a rebound for both meme tokens. Grayscale is gearing up to introduce the first Dogecoin ETF by November 24, following a positive SEC review period. On the other hand, Shiba Inu saw a massive 23,864% increase in its burn rate within a day, signaling a significant reduction in its supply. Additionally, 21Shares recently launched a leveraged ETF that aims to double exposure to Dogecoin, reflecting the rising institutional interest in meme tokens.
The potential approval of the Dogecoin ETF has sparked excitement among investors. Bloomberg Senior ETF Analyst Eric Balchunas noted that regulatory support for the ETF is favorable, provided the required paperwork is submitted by the exchange. This development comes on the heels of 21Shares unveiling a 2x leveraged DOGE ETF on Nasdaq, which amplifies the token’s daily movements, presenting increased returns and risks. Michael Friedman from 21Shares hinted at potential future offerings for other altcoins, aligning with the momentum observed in the community.
However, Shiba Inu’s performance exhibits a mixed bag of core metrics. While a surge in burn rate triggered by a large transfer has led to a decrease in circulating supply, the token still remains significantly below its all-time high from 2021. Notably, the token’s inclusion on Japan’s regulatory “Green List” alongside Bitcoin and Ethereum has bolstered its credibility, but its future hinges on further advancements within its ecosystem, such as integration with Bitget Wallet.
The upcoming U.S. economic calendar highlights key reports on inflation, jobs, and manufacturing, which could impact overall risk sentiment. Unpredictable data releases could exert pressure on crypto assets, especially amid the Federal Reserve’s continued delay in rate cuts. X Financial’s third-quarter earnings underscore increasing credit expenses, underscoring ongoing economic vulnerabilities.
In the midst of these developments, Dogecoin stands to benefit from ETF-driven demand and cultural momentum fueled by Bit Origin’s $500 million DOGE acquisition strategy. Nevertheless, technical experts caution that DOGE’s current dip lacks robust support, necessitating a swift rebound to stave off further declines. On the other hand, Shiba Inu’s Shibarium network shows early signs of throughput improvements, with daily transactions seeing a notable uptick. Despite this progress, the token’s speculative nature continues to constrain its broader appeal.
