Dogecoin and Shiba Inu (SHIB) Underperform as Market Crisis Exposes Meme Coins' Weaknesses

Even though you could say that the entire cryptocurrency market has been experiencing rough patches, Dogecoin (DOGE) and Shiba Inu (SHIB) are particularly underperforming. These tokens were trading at their highest prices in 2021, and since then they have lost value of around 80%, and their future potential looks very unlikely.

Despite the broader cryptocurrency market experiencing difficulties, Dogecoin (DOGE) and Shiba Inu (SHIB) are notably underperforming. These tokens, which reached all-time highs in 2021, have since lost roughly 80% of their value, with their future potential appearing bleak. Several variables contribute to the present crisis, including macroeconomic effects and broader market trends that have also impacted major cryptocurrencies like Bitcoin.

The Relationship With Bitcoin

One of the main reasons for Dogecoin and Shiba Inu's declining values can be linked to their strong correlation with Bitcoin. According to data from IntoTheBlock, they have a price correlation of 0.92 and 0.87 with Bitcoin, respectively, indicating that they tend to follow the price movements of the flagship cryptocurrency. As Bitcoin fell below $56,000 on September 5, 2024, both DOGE and SHIB suffered greatly; Dogecoin dropped to $0.096 and Shiba Inu dropped to $0.00001309.

Macroeconomic events, such as the continuing effects of the Yen carry trade and its link to the stock market, which has also seen significant losses, have slowed down the larger bitcoin market. These events have eroded investor confidence, leading to decreased trading activity in DOGE and SHIB. According to CoinMarketCap, Shiba Inu experienced a 12.86% decrease, while Dogecoin's trading volume dropped by more than 3%.

Historical Patterns and Bearish Outlook

Historically, September has not been a favorable month for Dogecoin and Shiba Inu, with most years since their introduction showing monthly losses for both coins. The last time they saw significant gains during this period was in 2021, during the broader market's strong bullish phase. While SHIB risks falling below $0.000010 if it breaks through the psychological support at $0.000013, DOGE faces a critical support level at $0.077.

Amidst the challenges faced by meme coins, other cryptocurrencies are beginning to show greater promise. One such initiative is Rexas Finance (RXS), which has recently gained attention for its unique approach to real-world asset tokenization. Unlike meme coins, which often rely on hype and community-driven movements, Rexas Finance is focused on solving real-world problems by using blockchain technology to digitize and fractionalize conventional assets, such as real estate, commodities, and collectibles.

Rexas Finance (RXS): An Alternative Gaining Momentum

Currently in its presale stage, Rexas Finance presents investors with a discounted pricing chance to purchase RXS tokens. With the token price climbing from $0.03 in the first stage to $0.06 in the fourth stage, the presale has experienced very amazing expansion. Rexas Finance is fast attracting investor interest with over 90 million tokens sold and more than $4.2 million raised. The expected listing price of $0.20 points to early adopters having a notable possible upside.

To further engage the community, Rexas Finance has launched a $1 million giveaway program where 20 fortunate winners will each get $50,000 worth of RXS tokens. By completing various tasks—such as entering their ERC20 wallet addresses, completing quests, and referring friends to get additional entries—participants can increase their odds. This community-oriented strategy aims to expand the platform's user base and reward early supporters.

Distinctive Features of Rexas Finance (RXS)Several distinctive qualities of Rexas Finance contribute to its increasing momentum:

Asset Digitization: Rexas Finance streamlines the process of digitizing conventional assets, facilitating fractional ownership and increasing liquidity in previously illiquid markets. This democratizes access to assets, enabling smaller players to participate in sectors like real estate, which were previously limited to high-net-worth individuals.

Rexas QuickMint Bot: Designed for popular messaging apps like Telegram and Discord, the platform has a user-friendly bot integrated. This bot lets users easily start and run token projects, enabling the platform to be used even by non-technical people. By supporting token creation on multiple Ethereum Virtual Machine (EVM)-compatible blockchains, Rexas Finance provides users with freedom and options in their asset management needs. Advanced artificial intelligence and blockchain technologies are incorporated into the platform to enhance security, reduce costs, and expedite data tokenization.

Can SHIB And DOGE Bounce Back?While meme coins like Shiba Inu and Dogecoin are known for their drastic price fluctuations, their heavy reliance on social media buzz and community sentiment poses significant risks. Macroeconomic challenges and the current bearish trend make a near-term recovery unlikely unless broader market conditions improve. Projects like Rexas Finance, which emphasize practical applications and real-world use cases, have a stronger foundation for growth.

Real-world asset tokenization offers investors a more sustainable and innovative way to engage in cryptocurrency investments while catering

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