Meme coin rally in February is set to be lead by Shiba Inu. The dog-themed token is expanding it ecosystem utility with the “Shibarium” scaling solution and a new virtual prepaid card. Meanwhile, Floki Inu will burn over $100 million worth of tokens after the community passes a new proposal.
Conversely, bankrupt crypto lender Voyager has moved some of its SHIB holdings onto exchanges, which could trigger a spike in selling pressure and lead to a correction across the meme coin market.
Shiba Inu To Lead Meme Coin Rally
Shiba Inu (SHIB) is the second-largest meme coin in the global cryptocurrency market after Dogecoin. The dog-inspired ERC-20 token has surged nearly 50% YTD, outperforming 60% of the top 100 crypto assets.
Price — $0.00001248
Market Cap — $7.4billion
Ranking — #15
Meme coins are specific forms of cryptocurrency that are highly speculative and mostly driven by certain enthusiastic online trading communities and popular culture rather than technological applications.
In recent times, prominent meme coins have begun to add community-driven use cases to expand their token utility and ensure project sustainability.
As February approaches, SHIB is well-poised to continue its bullish start to 2023. Due to its historically strong correlation to Bitcoin prices, SHIB is set to benefit from Bitcoin Dominance and strong fundamentals over the next 30 days.
SHIB – BTC correlation, January 2023. Source: IntoTheBlock.
On-chain data shows a 97% correlation between SHIB and BTC prices. The strong correlation means that SHIB is historically observed to move in the same direction as BTC. And as BTC’s dominance strengthens, we expect SHIB to maintain its strong performance throughout February.
Shiba Inu Set for February Ecosystem Traction Boost
In terms of ecosystem traction, the Shiba Inu community has made a series of efforts to increase transaction efficiency and enhance the utility of the SHIB Token.
On Feb 1, Shiba Inu lead developer Shytoshi Kusama dropped a teaser hinting at the imminent “Shibarium” release. Shiba Inu community influencers who were quick enough to catch the now-deleted post took to Twitter to share screenshots.
“Shibarium” is an upcoming layer-2 solution that aims at enhancing transaction efficiency on the Shiba Inu ecosystem by providing faster, cheaper, and more private transactions. A successful testing and launch of Shibarium will lead to a February price surge in SHIB. Which could spread across the perennially correlated meme coin market.
Meanwhile, crypto payment platform FCF Pay, which issues virtual crypto debit cards, has reported that card payments denominated in Shiba Inu tokens have reached a new all-time high. This increasing adoption of SHIB across the global markets signals a price uptick in February.
Floki Inu Set for a Rally as February $100 Million Burn Proposal Passes
Floki Inu is a multi-chain meme coin that runs on the Ethereum and BNBChain networks. The memecoin ranks 350 in the global charts. FLOKI Inu has gained 227% YTD to climb to 8th on the top 10 gainers list for 2023.
Price — $0.00000687
Market Cap — $64M
Ranking — #350
FLOKI is poised for another bullish performance in February as the community gears up to burn a significant portion of its token supply.
On-chain data from Santiment shows that investors are firmly primed for a positive FLOKI performance in February.
FLOKI Weighted Sentiment, February 2023. Source: Santiment.net
A weighted sentiment ratio of 2.93 indicates strong FLOKI buy-pressure in anticipation of a positive February performance.
The Weighted sentiment is a metric that measures the ratio of positive and negative perceptions across the media. Including developer and investor communities channels. Investors are positioned for a rally when the weighted sentiment is greater than 1.
The recent positive sentiment surrounding FLOKI has been attributed to the recent token-burn proposal passed by the community in late January.
In the governance proposal introduced on January 26, Floki Inu community has voted to burn the bridge tokens and remove the transaction tax for the meme coin.
The total burn volume of Floki Inu tokens was 4.97 trillion FLOKI. It was worth around $60 million at poll time, but the meme token’s value has since surged above $100m. We predict that this uptrend will continue in February.
Voyager Dump May Trigger Market-wide Meme Coin Dump
Voyager, a collapsed crypto lender locked in a legal battle with defunct crypto exchange FTX has made some transactions that may halt the rally in the meme coin market. In September 2022, the embattled Sam Bankman Fried won a hotly contested auction to acquire Voyager assets for $1.4 billion.
Notably, FTX’s has now moved to recover $446 million worth of funds from Voyager due to it own on-going legal squabbles. On-chain data trackers have spotted some notable transactions made by Voyager.
According to PeckShield — a blockchain security platform, Voyager transferred almost $10 million in digital assets to different crypto exchanges over the past 7-days.
The data depicts that 270 billion SHIB, worth roughly $3.2 million, was the largest tranche of tokens moved by the defunct crypto lender. ETH, VGX, and LINK were among the other cryptos moved by the “Voyager 1” wallet.
Peckshield revealed that the ‘Voyager 1’ address still held around 6.8 trillion SHIB. This further emphasizes the potential invalidation of a February meme coin rally. If Voyager dumps the meme tokens, we predict an impending correction for SHIB and other meme coins in the coming weeks.