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Despite being the spinoff of another meme coin, Shiba Inu managed to race ahead of Dogecoin for a while. The rally we have seen in the last couple of days led to SHIB achieving something so extraordinary, it got investors worried about who would end up being SHIB’s next target.
Shiba Inu on a roll
Firstly in these last 7 days, the meme coin went completely berserk and flipped not only one or two but 12 altcoins. And not just any random coins either, names like Litecoin, Chainlink, Polygon, Uniswap, Terra (LUNA), USDC, and now even Dogecoin.
Ranking at the ninth spot, SHIB managed to rise phenomenally from the lows of $4 billion – $7 billion to currently sit at $37.5 billion and now the next in its line is Polkadot which is only $5 billion away.
Cryptocurrency ranking | Source: CoinMarketCap
So what went wrong for Dogecoin to be flipped by Shiba Inu? Well, the reason why DOGE was flipped despite rising by 21.81% this week is not that it failed to do something. It is just that SHIB ended up performing better than DOGE.
In fact, because of SHIB, Dogecoin actually rallied by over 26% in just a day yesterday. And this bullishness was also visible on the network.
Since every mention of Shiba Inu was preceded or succeeded by the mention of Dogecoin, it was obvious for DOGE to see some interest and the attention actually really benefited the altcoin.
Dogecoin price action | Source: TradingView – AMBCrypto
DOGE broke records in terms of volumes and investor participation in the past 24 hours. Volumes skyrocketed to a 5 month high of $33.1 billion. Transaction counts and active addresses both literally doubled in just one day.
Dogecoin volumes | Source: Intotheblock – AMBCrypto
So can Dogecoin protect its spot?
Maybe and maybe not. Maybe because SHIB’s rally could be (hopefully) the result of a trend and when it dies down the meme coin would go back down as investors would sell it soon, which has been the case for ages now.
And maybe not, because right now SHIB is conducting more than $18 billion worth of trades. This is $9 billion more than that of DOGE despite yesterday’s rise. And if it doesn’t go up, it won’t take SHIB more than 24 hours to widen the gap enough to cement itself as the ninth biggest crypto asset in the world.
Plus, Polkadot is not in a good shape either right now. Its development activity and social sentiment have been declining and on top of that, its volume is literally 4.1% of SHIB’s volumes. So yeah, it is worrisome and DOT could be flipped if SHIB continues to rise.
Polkadot investor sentiment | Source: Santiment – AMBCrypto
On the other hand, it did come down by 13.12% yesterday so the wind could change for good.
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