Shiba Inu (CRYPTO: SHIB) saw its popularity skyrocket over the last few months, sometimes even overtaking leading memecoin Dogecoin (CRYPTO: DOGE) in key metrics, now OKEx highlights that last month SHIB had a significantly higher trading volume on the platform.
What Happened: Hunain Naseer — the senior editor at OKEx Insights — told Benzinga that “SHIB has captured retail interest in a big way in the last couple of weeks.” Data shared by the exchange show that in October Shiba Inu’s volume topped $11 billion while Dogecoin only saw about $7.7 billion of trading activity.
See Also: IS SHIBA INU (SHIB) A GOOD INVESTMENT?
Naseer said that Shiba Inu saw this much attention “mostly because of its price point and significant gains.” Furthermore, he believes that “retail traders who missed out on the big DOGE move earlier in the year saw SHIB as another opportunity for similar gains and that fueled the frenzy further.”
As of press time, Shiba Inu is trading at $0.00005933 after gaining about 18% over the last 24 hours, at press time according to CoinMarketCap. This is still 55% lower than the late October high of $0.00008719.
Naseer said that Dogecoin already showed that drastic gains such as those recently seen by Shiba Inu are not sustainable, “so while memecoins can surge due to retail fear of missing out, they almost always slide back majorly.”
While some investors who bought in at high prices may find themselves waiting for a bounce that may never come, Naseer pointed out that “memecoins are not entirely bad for the space” since “they act as a gateway for a lot of retail investors who then get a chance to explore the space further and learn how it spans much more than their favorite memes and dog breeds.”
For the time being, Naseer expects the memecoin bullish trend to continue “especially as the bull market remains on course.” Still, at the end of this bull cycle, he thinks memecoins could “become staples in most cryptocurrency portfolios due to their potential for outsized gains in a highly volatile and often unpredictable market.”