The evolving world of crypto has witnessed recent market volatility that has influenced the surge of various cryptocurrencies, including memecoins such as Shiba Inu (SHIB) and Dogecoin (DOGE). Despite the major currencies like Bitcoin (BTC) and Ethereum (ETH) battling for supremacy in the crypto space as they experience surges in their prices, it’s evident that their influence has created a spillover to other altcoins.
Recent market data show that both DOGE and SHIB have experienced a surge of over 5% in their prices following the current market bull rally. This has come as a surprise based on the backdrop of crypto traders in the memecoins. As such, this can be attributed to traders embracing riskier investments.
Shiba Inu’s (SHIB) and Dogecoin’s DOGE market gain
These two popular memecoins have shown records of underperforming major cryptos in the past week, as they recorded a 9% gain in their market value. This was a 24-hour gain that suggested that crypto trades are betting on riskier assets on Bitcoin’s back based on its recent market dominance and outperformance.
The sudden increase in the memecoin market prices can only be linked to Bitcoin’s bull rally that came after a long consolidation period since late last year. This is the only explanation for the surge in Dogecoin’s and Shiba Inu’s prices since no related macroeconomic events directly influence the coins.
Bitcoin’s increased price has come as a result of the growing interest in spot Bitcoin exchange-traded funds (ETFs) that have seen its price bump up by 30% in the past weeks. This surge affected other digital assets, including Ethereum, Solana, and XRP. Combined, all these three assets recorded a 40% total gain.
However, Dogecoin and Shiba Inu added a 15% gain over the same period. Still, compared to other crypto assets in the market, these memecoins underperformed other majors regardless of being highly volatile.
According to a December report by Santiment, a blockchain analyst firm, “Every time that the price of DOGE starts rising rapidly, there’s a market-wide crash following just moments later,”
Crypto analysis of the 9% gain in DOGE and SHIB
Both digital assets experienced this jump on Thursday after the prominent social media platform X announced its audio and video call feature. Elon Musk has led the newly rebranded Twitter platform in realigning the dream of it being an everything app.
Since Elon has been a strong supporter of Dogecoin, the increase in the market value might be targeted from Elon’s enthusiasm for the DOGE memecoin, which could potentially be a payment method for the X platform. This is according to some traders in the crypto space.
Among the developments that have fostered these comments include Elon’s mention of the memecoin during an appearance on the Saturday Night TV show. Additionally, following his acquisition of Twitter for $44 billion, the app briefly changed its logo to the Dogecoin logo in April. This resulted in a DOGE rally that gained 37%.
However, X’s audio and video features will only be available to premium users within the platform. These features will only cost $0.23 per day annually if bought via the Web.
Moreover, the cumulative trading volumes of the tokens surged to $1.2 billion on Thursday. This was a huge rally from its $350 million on Monday. Additionally, open interest in the memecoin futures, including DOGE and SHIB futures, recorded a spike of over 50%.
This has indicated the huge bets placed by traders and investors, showing their confidence in riskier investments. These bets were placed in light of the expected increase in volatility in the cryptocurrency market.
Market price update
According to Binance, the current price of Dogecoin is 0.066744 per (DOGE / USD), with a market worth of $9.45 billion USD. The 24-hour trading volume is 770.79 million USD. With a circulating supply of 141.54B, Dogecoin has gained +6.54% in the last 24 hours.
Furthermore, the current market value of Shiba Inu is 4.71 billion USD, with a live price of 0.000008 per (SHIB / USD). The 24-hour trading volume is 392.26 million USD. Shiba Inu has gained +7.34% in the previous 24 hours, with a total supply of 589,346.91B.
According to CoinMarketCap, the global crypto market valuation is currently $1.25T, a 2.12% fall from the previous day.
The entire crypto market volume over the last 24 hours is $52.34B, a 6.26% decline. DeFi‘s total volume is currently $4.88B, accounting for 9.33% of the overall crypto market 24-hour volume.
The overall volume of all stablecoins is now $46.72B, accounting for 89.26% of the total 24-hour volume of the crypto market. Bitcoin’s dominance is at 53.17%, a 0.19% decline from the previous day.