Dogecoin and Shiba Inu Rise 9% as Crypto Traders Seek Riskier Plays

In the past 24 hours, popular meme tokens, Dogecoin (DOGE) and Shiba Inu (SHIB), have surged by approximately 9%. This sudden rise indicates that crypto traders are embracing riskier investments, likely influenced by Bitcoin's recent strong performance.

While there were no immediate catalysts for the surge in DOGE and SHIB, the prices spiked on Thursday following X's (formerly Twitter) announcement of a video calling feature for premium users. Some traders speculated that this move might lead X to adopt DOGE as a payment option, contributing to the optimism.

Elon Musk, CEO of X, has consistently shown interest in Dogecoin, even dedicating a segment to the meme coin during his appearance on "Saturday Night Live" in 2021. In April, Twitter temporarily changed its logo to the Dogecoin logo, resulting in a 37% price rally.

Trading volumes for DOGE and SHIB increased from $350 million on Monday to $1.2 billion on Thursday. Furthermore, open interest in DOGE and SHIB futures surged over 50%, indicating larger bets by traders expecting increased volatility.

Although Bitcoin prices surged by 30% over the past week due to hopes of a spot Bitcoin exchange-traded fund (ETF), DOGE and SHIB only saw a 15% increase during the same period. Despite their higher volatility, these tokens underperformed compared to other major cryptocurrencies.

It's worth noting that historical data shows that a rapid rise in the price of DOGE often precedes a market-wide crash, impacting Bitcoin and other major tokens. Blockchain analytics firm Santiment reported similar patterns last December, where a DOGE surge was followed by a broader market downturn.

(photo source: Kanchanara - Usplash)