06 Mar 2024 Arjun Agarwal
Shiba Inu's Price Explodes, Other Meme Coins Go Up As Well
The price of Shiba Inu (SHIB) is halfway to its all-time high following a 205% increase in a week. In the last few days, a lot of meme coins have done exceptionally well. A couple of them have even reached their peak, crossed the ATH value, and seen a 3000% increase in weekly trading volumes. Because of this recent spike, Shiba Inu might be regarded as one of the best-performing meme coins.
SHIB's price has increased by over 205% from last week to $0.00003397 at this moment. However, the meme coin didn’t surge in a single day as SHIB's price has increased by 276% when compared to data from 30 days ago. It was trading at $0.00001082 on February 28th, with $617.67 million in trading volume.
Source: CoinMarketCap
Shiba Inu's market cap has topped 20 billion, propelling it back into the top ten most popular cryptocurrencies as a result of this spike. For instance, the original meme coin, Dogecoin (DOGE) has a similar market cap, beating Shiba Inu by $3 billion.
Memecoins explode in a bullish environment
Shiba Inu, sometimes referred to as "Dog-Killer," is the second-largest meme coin behind Dogecoin. Notable success stories have brought attention to a number of meme coins, such as Dogecoin, Bonk, and Floki Inu. As a result, the markets for several other meme coins, like SHIB, became optimistic.
The market's growing inclination toward purchases is another important factor. Spot-On-Chain claims that MakerDAO founder Rune Christensen recently purchased 7.41 billion SHIB worth $100,000 USDC on March 1st, which is rumored to be the cause of the initial spike. Not long after, he used 400K $USDC to purchase 17.629B $SHIB, causing another increase.
However, the price of Shiba Inu has decreased by 8.61% from yesterday's level and may perhaps return to the rise zone. Even though SHIB has been performing exceptionally well these past three days, this price decline was swift.
The on-chain statistics show a 140% rise in active SHIB accounts. Within a single day, there has been a 160% increase in whale activity and transactions. On Monday, there were 2222 whale transactions exceeding $100,000, up from significantly less the day before. There were just 845 transactions on Sunday. The number of active accounts experienced the same outcome. On Sunday it was 788, and on Monday it was 1896.
Price Drop for Coinbase
Shiba Inu prices on Coinbase fell on Tuesday morning as a result of a malfunction brought on by a liquidity overshoot. Coinbase had a 50% price drop, but it quickly rebounded. It may occur when there is a lot of market volatility or when the sell order is larger than the available market depth. On Coinbase, the most recent market depth for SHIB was approximately 1.2 million.
Furthermore, panic selling occurred within the SHIB ecosystem. When a large number of people sell their tokens in unison to protect themselves before the price falls, it's known as panic selling. In this instance, the same thing occurred, which ultimately caused the price to decline. The Shiba Inu community has discussed the recent selling through X, criticizing the sellers and praising those who purchased more in the dip. They claim that this is the proper strategy for the meme coin's expansion.
It also has to do with Bitcoin's 12% decline following its last all-time high. Since yesterday, the entire cryptocurrency market has decreased slightly.
Other meme coins follow suit
It turns out that SHIB is not the only meme coin that exploded in both price and transaction volumes. Dogecoin managed to secure a 62% price increase over the past seven days, but coins like FLOKI made even larger price increases with FLOKI marking a 150% price increase, MYRO reaching 265% more in value, while Super Trump (STRUMP) made a staggering 1622% price jump in the same time period. The overall crypto sentiment is extremely greedy, as per the CMC Fear and Greed index, which usually indicates an imminent downward correction.
