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Memecoins, just like major cryptocurrencies out there have also piqued the interest of the trading public especially when Tesla and SpaceX CEO Elon Musk heavily promoted dogecoin (DOGE) over on social media. Then there’s the Shiba Inu (SHIB) which was named after the K-9 that inspired the former. These two notable tokens have grown to become the top picks of the majority of small retail investors out there as of late.
Shiba Inu purchases
A massive cryptocurrency exchange platform in India recently endured outages as traders took the chance and purchased Shiba Inu. This resulted in the platform’s servers being filled to the brim and eventually bogged down the crypto exchange’s trade executions on Wednesday.
With that in mind, a whopping $566 million worth of trades was processed on the said platform on that day, not to mention that it was deemed to be the highest of any cryptocurrency exchange in that country.
Bringing down the exchange
In line with this, it was stated that the incident has basically brought down the exchange. It was further explained that the kind of active numbers and the active users that they observed in the last 48 hours has somewhat shocked the platform adding that it was caught off guard by what happened. The COO of the crypto exchange went on to say that they were ready for such a move by bitcoin, though admitted that they’re not when it comes to Shiba Inu.
Analysts are now speculating that there could be some amount of unit bias that went into play that day. It’s like a trader’s $500 will get him at least 0.0081 Bitcoin (as of publication). A fellow trader, on the other hand, would get almost seven million SHIB with the same amount.
Further, while this so-called “smart money” is beginning to manifest to be trading both dogecoin and Shiba Inu, the big-time investors are leaning towards major coins like Bitcoin (BTC) and ether (ETH). Additionally, the trade sizes of both BTC and ETH’s are significantly bigger as compared to DOGE and SHIB on the majority of exchanges out there.
‘Price action is retail-drive
That said, Kaiko’s strategic initiatives and research lead at digital asset data provider Clara Medalie said that the “price action is retail-driven.” She went on to reference Binance on this one as she highlighted that the average trade for both ether and bitcoin is at around $2,000. The said figure according to her is $900 for the Shiba Inu and $1,200 for dogecoin.
She went on to point out that while the trade size is not a suitable gauge for institutional investment, one can still observe clear trends that are in line with waves of interest.