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TL;DR
SHIB’s trading volume spikes despite a price drop, indicating growing interest, while it narrows the market cap gap with DOGE.
Significant gains for early meme coin investors contrast with the inherent risks of their volatile nature.
While the price of Shiba Inu (SHIB) might be down 17% in a week, some important indicators related to its ecosystem have surged by triple digits, hinting at increased investor interest and rising adoption.
According to IntoTheBlock, SHIB aggregated daily volume has neared the $600 million mark, a 200% surge compared to the figures observed on March 11. In comparison, Dogecoin (DOGE) has witnessed a more modest increase of approximately 92%.
Earlier this month, Shiba Inu outperformed its rivals on other fronts, too, while the gap between the two leading meme coins dropped to less than $5 billion.
The impressive rally of the self-proclaimed Dogecoin-killer caused some to suggest that a flippening might be on the horizon. ChatGPT and Perplexity have both outlined their estimations about such a scenario. You can read the latter’s answer here.
Apart from nearing the first spot in the meme coin realm, SHIB’s 250% price ascent in the past month benefited investors who joined the ecosystem in its early days.
As CryptoPotato recently reported, one savvy trader made a profit of over $1.5 million (at least on paper) after purchasing 50 billion tokens in 2021.
Another meme coin that has experienced an exponential price surge and thus making millionaires is the Solana-based dogwifhat (WIF). An individual bought more than 2.5 million assets at the end of 2023, spending just $310. As of the moment of writing these lines, the profit equals $4.8 million.
Dealing with meme coins amidst the current market revival appears to be a tempting option, yet it may lead to significant losses due to the cohort’s notorious instability. Please take a look at our latest video to check the most common mistakes that successful traders need to avoid when dealing with assets of that type:
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