The price of the Shiba Inu dog coin has multiplied in recent weeks. How is the success explained?
From dogecoin imitation to killer dog? The price rally of Shiba Inu (SHIB) continues unabated in the slipstream of the Bitcoin bull run. Compared to the previous week, the once mocked Memecoin recorded an increase of more than 120 percent at the time of going to press. Compared to the previous month, SHIB even increased an impressive 335 percent.
The market capitalization of the altcoin also deserves attention. A week ago this was just over 9 billion US dollars, it has now risen to more than 14.5 billion. Shiba Inu thus climbs to 11th place among the largest cryptocurrencies. The shooting star of the hour, however, looks back on modest beginnings. Launched as a parody of Dogecoin, Shiba Inu got its name from the breed of dog that adorns the logo of the original four-legged coin. After a short price rally in May, most users had already written off SHIB again. How do you explain the recent comeback?
Does Elon Musk have a hand in the game?
A widespread narrative explains the rally des Memecoins with a well-known pattern of interpretation. Because Elon Musk, who once also helped Dogecoin to grow, presented Twitter on October 4th his new pet: a Shiba-Inu puppy.
However, it can be doubted whether Musk’s tweet was actually the sole trigger of the price explosion. Already on September 30th there was one Twitter pagewho is tracking large wallet movements, purchasing six trillion SHIB tokens. Other whales also increased their commitment to the dog coin in the first few days of October.
Shiba-Inu rally despite mini crash
On October 7th, the rally seemed to run out of breath. The price collapsed by up to 40 percent. The blockchain analysts at Santiment saw here also a reference to the market trading of the big fish:
#ShibaInu addresses valued at $ 1 million to $ 10 million SHIB made their largest dump in the asset’s 6-month history during Thursday’s decline. A total of 31.07 billion coins were sold by these addresses, which corresponds to 3.02 percent of the total stock of these medium-sized addresses. Now things are getting better.
However, Santiment regards the fact that the share price recovered just as quickly as hardly surprising. A similar dynamic also emerged after earlier SHIB sales.
Quo vadis Shiba Inu?
Of course, it remains to be seen whether Shiba Inu is on the way to a new all-time high. At least the fan community known as ShibArmy on Twitter and Reddit is busy promoting it. The official Twitter account for the cryptocurrency posted recently the millionth follower. A look at Google statistics also reveals that interest in Memecoin has been increasing steadily since the beginning of October.
There comes a planned NFT project the Shiba-Inu developer is just right. What is also certain is that Memecoin is making progress on the adoption front. On October 8th, the Bitcoin exchange took off Bitpanda SHIB in the range, while a cooperation with the payment service NowPayments became public on October 7th.