An Ethereum (ETH) software update known as 'The Merge' sent the popular dog-themed meme cryptocurrency soaring in the market.
Looking at today's chart, Dogecoin (DOGE) rallied 14% in the last 5 days while Shiba Inu (SHIB) reached 40%.
Hayden Hughes, CEO of social trading platform Alpha Impact, commented that last weekend's DOGE and SHIB breakthroughs signaled that investors are back.
He added that both cryptos are expected to make gains like ETH because each also needs to upgrade.
For now both are enjoying gains even as Bitcoin (BTC) hovers around $25,000 and ETH in the $2,000 range as investor confidence appears to be recovering.
According to CoinGecko, the crypto market is showing signs of recovery with a total market capitalization of around $1.2 trillion after a decline of almost $875 billion on June 19.
Among the surge factors other than 'The Merge' is the United States (US) inflation data reading which is lower than expected, thus increasing the hope that the Federal Reserve (Fed) will reduce its rate hike.
However, the surge in the crypto market is not celebrated by everyone.
The Chief Executive of Venn Link Partners, said the two assets do not have the market depth of ETH or BTC so little demand will bring liquidity driven by speculators.
This was also emphasized by Huges who said in his note that investors should be careful with the rally.
He said Alpha Impact investors are seen to be watching and waiting for institutional investors who tend to trade this week.
