Dogecoin and Shiba Inu Are Beating Bitcoin to Lead the Cryptocurrency Rally

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Shiba Inu and Dogecoin rallied on Friday after a brutal selloff this week.

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Cryptocurrency investors are getting a respite on Friday, with Bitcoin prices surging 10% after hitting the lowest levels since late 2020.

It’s been a tough week—tough year—for digital assets, with the latest selloff sparked by stress spilling over from the stock market and fueled by the collapse of a stablecoin that was supposed to be relied upon when other tokens tanked.

But the worst looked to be over as the week drew to a close, at least for now. And if Bitcoin holders are breathing a sigh of relief, owners of “memecoins” might be cheering. Dogecoin and Shiba Inu were jumping as some of the biggest gainers in the crypto rally, up 20% and 30%, respectively.

Called memecoins because they were initially intended as internet jokes rather than significant blockchain projects, tokens like Dogecoin and Shiba Inu have exploded in popularity over the past year and enjoy cultlike community support.

But while they were seeing impressive gains on Friday, both tokens remain deep in the red over the longer term.

Dogecoin was trading around 9 cents, a far cry from its—albeit brief—all-time high of 74 cents this time last year, and down almost 50% in 2022 alone. Shiba Inu’s price is a fraction of a penny, but still 83% lower than the fraction of a penny it was trading at in November 2021, when it hit an all-time high.

Write to Jack Denton at jack.denton@dowjones.com