In the world of cryptocurrencies, the meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) are back in the limelight with a remarkable 9% jump over the past 24 hours. Crypto traders seem to be taking bolder risks as Bitcoin’s dominance shines.
DOGE and SHIB Memes on the Rise
Dogecoin and Shiba Inu, the beloved meme tokens of the crypto community, have made a spirited comeback. Both coins witnessed a 9% surge in the past day, signifying a renewed appetite for risk among crypto traders.
No Immediate Catalysts, But Surging
Surprisingly, there were no immediate catalysts behind the sudden surge in DOGE and SHIB prices. However, these tokens gained momentum on the heels of a significant development on the social media platform X (formerly Twitter). X introduced a video calling feature for premium users, a move that sparked enthusiasm in the crypto community. Some traders had anticipated that X would add DOGE as a payment option, creating a ripple of excitement.
The Musk Effect
It’s worth noting that X’s CEO, Elon Musk, has consistently championed Dogecoin, considering it one of his favorite cryptocurrencies. His endorsement was so influential that it led to a notable DOGE rally when he dedicated a segment to the meme coin during his appearance on “Saturday Night Live” in 2021. In another instance, Twitter briefly replaced its logo with the Dogecoin logo in April, propelling a rally that saw gains of up to 37% for some traders.
Trading Volumes and Open Interest Soar
Cumulative trading volumes for DOGE and SHIB surged from $350 million on Monday to $1.2 billion on Thursday, underlining the growing interest in these tokens. Additionally, open interest in DOGE and SHIB futures spiked by over 50%, a clear indication that traders are gearing up for more volatility in the days ahead.
DOGE and SHIB vs. Major Players
Although DOGE and SHIB showed a respectable 15% gain in the past week, they trailed behind other major cryptocurrencies that experienced price surges of up to 40%. This underperformance is notable, given that meme coins are generally known for their higher volatility.
It’s worth mentioning that the sudden rise of DOGE and SHIB has, in the past, marked a local peak for Bitcoin and other leading cryptocurrencies. As blockchain analytics firm Santiment pointed out in a report last December, a rapid surge in DOGE’s price often preceded a market-wide downturn. This historical pattern serves as a reminder to tread cautiously in the crypto waters.
The allure of meme coins continues, and as always, their influence on the broader crypto market remains a topic of keen interest for traders and enthusiasts alike.