After yet another week of sideways action, Bitcoin struggles to break the $30,000 barrier. In yet another sign of its sway in the cryptocurrency market, the Shiba Inu token (SHIB) encountered another price pump, increasing another 5% while Bitcoin stagnates. Here, we analyze the movement of SHIB and other markets to understand what is propelling the token’s price higher.
1. Shiba Inu (SHIB) Gains Another 5% Despite Bitcoin Stagnating
The popular altcoin Shiba Inu (SHIB) continues to surge despite a stagnant Bitcoin market. In the last 24 hours, SHIB gained another 5%, reaching a total growth of more than 400% over the last seven days.
The meteoric rise of SHIB has made it one of the top performers in the crypto market recently. Currently, SHIB is the 5th biggest digital asset by total market cap and it has a net 24-hour trading volume of $ 13.5 billion, making it one of the most active tokens in the world.
Analysts attribute the rise in SHIB’s price to both major inflow and retail buyers excited by SHIB’s yields. Recently, a new feature called “yield farming” was introduced to the token, allowing users to earn daily rewards for holding SHIB and providing liquidity. This has drawn huge attention to the token, boosting its value significantly.
Due to SHIB’s decentralized nature, it is difficult to predict future price movements. Still, many experts have expressed optimism over the token’s prospects due to its unique features and its increasing popularity among traders:
- SHIB has almost no transaction fees and lightning-fast transactions.
- The token has a large community of users, making it easier for developers to build services and applications using SHIB.
- SHIB’s low circulating supply makes it easier for traders to manipulate its price.
2. Crypto Market Views Shiba Inu (SHIB) with Optimism
Shiba Inu (SHIB) recently overtook Binance Coin (BNB) to be the world’s sixth-largest cryptocurrency by market capitalization. This further signals the growing adoption of the dogecoin-inspired token among investors.
Exploring the Tokenomics
Examining Shiba Inu’s tokenomics, the cryptocurrency has a capped supply of one quadrillion SHIB tokens. It is believed that this amount is locked in the Uniswap liquidity pool, where investors can purchase the cryptocurrency through exchange with Ethereum’s Ether (ETH) tokens.
Partnerships are Key
Shiba Inu (SHIB) is believed to be backed by some major tech firms and venture capitalists who have been supporting the project in secret. This has bought the market’s attention to the cryptocurrency in the last few months as its value continues to surge.
Synergizing with TRON’s Poloniex
Poloniex, an exchange operated by blockchain protocol TRON (TRX), recently announced that it would support deposits and withdrawals of Shiba Inu (SHIB). This came after the exchange announced that it was also set to list the token on its platform. The listing is expected to commence in June 2021.
- The move continues to paint a bullish picture on the cryptocurrency in the eyes of investors.
- Technical indicators have painted a strong bullish trend on the cryptocurrency, which is looked as one of the most promising digital assets in the market.
3. Market Watch: BTC Flatlines at $29K While Shiba Inu (SHIB) Surges
Bitcoin’s market dominance took a slight hit, dropping to around 44.3%, as altcoins have begun posting big gains in recent days. Crypto traders appear to be shifting money back into the altcoin sector, a trend that has been ongoing since the start of 2021.
The asset seeing the biggest gains is Shiba Inu (SHIB). Over the past few days, the canine-inspired project has seen a staggering surge of 1,673% in terms of its market cap. The market cap for SHIB currently stands at $10.8 billion, making it the 10th largest cryptocurrency.
The recent surge appears to have been caused by a dog token airdrop planned by Binance on June 3. More details on the airdrop have yet to be revealed, but traders seem to be jumping at the chance to capitalize on the potential success. Additionally, SHIB has seen a staggering 5,914% price increase since its late April launch. Despite some crackdown efforts by the U.S. authorities, SHIB remains one of the most traded assets on the market.
BTC, on the other hand, has been stuck in a tight trading range, with the digital currency hovering around the $29,000 mark since May 28. BTC’s market dominance, however, appears to have not suffered much due to SHIB’s massive increase. Analysts believe that BTC will soon break through the current range and post new all-time highs in the coming weeks.
4. Is Shiba Inu (SHIB) a Viable Option for Altcoin Investors?
Shiba Inu (SHIB) is a relatively new altcoin that promises attractive returns for investors. This cryptocurrency is based on the Ethereum blockchain, and it’s steadily gaining more and more attention from crypto traders, primarily because it’s a meme-based coin.
The primary use case of SHIB is scarcity, with a total token supply of just one quadrillion— described by some as hard money.
Unlike other altcoins, Shiba Inu does not have a team of developers that work together to maintain the coin’s value and liquidity. Instead, the coin relies on the community’s support and participation to ensure its success.
Overall, whether or not Shiba Inu (SHIB) is an attractive option for altcoin investors depends heavily on the individual investor’s risk tolerance. On one hand, SHIB has the potential to deliver exponential returns, so investors who are willing to take a calculated risk on the cryptocurrency may be rewarded handsomely. On the other hand, there is no guarantee that SHIB will continue to remain valuable, so investors should exercise caution before investing.
It’s important for potential investors to carefully consider the pros and cons of investing in SHIB before committing to the venture. Here are key points to consider:
- Pros
- Relatively low price
- Potential for high returns
- Strong community support and participation
- Cons
- High risk due to lack of a development team
- Lack of serious application or use case
- No guarantee of liquidity or future demand
Ultimately, the decision to invest in SHIB should depend on an investor’s level of understanding of the cryptocurrency, as well as their risk tolerance and financial goals.
The SHIB pumps continue to add fuel to the crypto fire as the traditional markets remain relatively stagnant. With the increasing popularity of the meme-coin, it will be interesting to see if it is here to stay or if it will continue to soar and soon come crashing down. Time will tell, and investors should be cautious in their moves as the crypto markets remain riddled with volatility.