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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