Other dog-themed coins such as Dogecoin and SHIBA INU have been especially hard hit over the past week — falling by 14.88% and 17.79% as they slide down the rankings.
So far, it's been a terrible 2022 for the crypto markets — but bizarrely, there's one memecoin in particular that appears to be bucking the trend.
Baby Doge Coin has been on a tear since the year began. After starting the year at $0.000000001903, CoinMarketCap data shows it rallied to $0.000000004641 — that's up 143%.
While such a surge is unremarkable in the ever-choppy world altcoins, Baby Doge is one of the few assets that has managed to accelerate as the likes of Bitcoin and Ether suffer sharp falls in their prices.
Indeed, other dog-themed coins such as Dogecoin and SHIBA INU have been especially hard hit over the past week — falling by 14.88% and 17.79% as they slide down the rankings.
Baby Doge Coin has a staggering 730,000 followers on Twitter — and has been calling on Binance's CEO Changpeng Zhao to list the memecoin.
— BabyDoge (@BabyDogeCoin) January 6, 2022
The project has also been seeking to generate positive headlines by donating to welfare charities including the American Society for the Prevention of Cruelty to Animals — with the #BabyDoge hashtag trending in recent days.
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What Next for BABYDOGE?
As a recent deep dive into BABYDOGE on CoinMarketCap Academy noted, this memecoin has some rather unusual tokenomics. Exchanging Baby Doge Coin commands a 10% fee, which is designed to deter people from selling up. A debit card is also in the works.
BABYDOGE's rally is a sign that crypto traders are on the hunt for new places to find the astronomical gains they've become accustomed to after a blockbuster year for the markets.
Unfortunately, such rallies often don't last — with Dogecoin and SHIBA INU falling substantially since hitting record highs last year.
Speaking to the CoinMarketRecap podcast during a look back at 2021, Bloomberg Intelligence's senior commodity strategist Mike McGlone described DOGE and SHIB as "speculation machines," adding:
"DOGE's initial peak was around April. And then SHIBA INU, the last peak was late October. They're great signs of excesses in the market — when they peak, everything collapses or drops, and that's what happened. I called SHIBA INU a pure, perfect speculation machine until it isn't — at some point, it's gonna plunge… and it did. I don't expect those highs again … They're good indicators for the overall market when silly things go up and they get to the top 10 of all cryptocurrencies — that's a warning."
BABYDOGE's ascendancy indicates that some excesses in the crypto markets stubbornly remain.
