“Shiba Inu has become one of the most famous meme coins in the history of cryptocurrencies, even beating age-old Dogecoin. Its sudden rise to fame is based on multiple factors and identifying these effects can decipher the SHIBs eye watering gains.”
Shiba Inu: The Rise
Shiba Inu has been all over the news after its October’s 337% gain on price and is becoming one of the most bought coins in the entire cryptocurrency. With a sudden jump in its price, it peaked at a $14 Billion market cap and entered the top 10 cryptocurrency list beating some of the giants of cryptocurrency. Though many people are of the opinion that Elon Musk’s tweet with a picture of his Shiba Inu dog sparked the rise of Shiba Inu, there are other reasons that added to the Musk Effect and an effort will be made to identify these effects.
Reasons for the Rise
India Covid19 Relief Fund
The founder of Shiba Inu transferred half of the total currency supply (500 Trillion SHIB) to the wallet of Ethereum’s Co-Founder Vitalik Buterin for burning, out of which 10% (worth $1.2 Billion) were donated by Vitalik to India’s Covid19 Relief Fund. Though, the SHIBA community had an outrage about it as the price of SHIBA token fell by 35% within 24 hours after the donation, but in the long term, it provided a huge amount of advertisement and retail penetration for the coin and started its journey towards the peak.
The Whale Dive
The fame of SHIB caught the eyes of certain whales that dived into the opportunity to buy the cheap meme coin. According to Whale Stats, $43 Million worth of SHIB coins were bought by a whale on 30th September. Another whale bought 276 Billion SHIB tokens which were brought by a whale on October 3rd and so on. The entry of the whales provided the base for the retail investors as a factor of trust entered into the coin’s portfolio.
The Musk Effect
Of course, it was Musk’s Effect that triggered the price rise of Shiba Inu that required some spark to launch it to the moon as it was building up all the hype for so long. On October 4th, Musk tweeted a picture of his Shiba Inu dog Floki and the Shiba Inu currency realized a gain of 337% in a single day. Musk’s tweet acted as a catalyst to the price rise of SHIB rather than being the sole reason for its rise as claimed by some people.
Shiba Inu is not like other meme coins that are providing no value whatsoever to its investors, there is a huge community of investors that call themselves SHIBArmy and are pushing the project to improve over the time and it is for this reason unlike other meme coins, Shiba Inu has maintained it position even after a parabolic rise and it is being accepted as a payment mode by various financial institutions.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
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