Elon Musk’s favourite Dogecoin has gained over 30 per cent in the last week, but the second-largest meme coin, Shiba Inu, has zoomed more than 45 per cent in seven days after a beatdown from the peak.
Despite the profit booking on Monday, Shiba Inu is hovering around $0.00001196 on Monday, near its monthly highs. However, it is still 85 per cent below its all-time peak of $0.00008, hit in October 2021.
“Shiba Inu, the second-largest meme coin, seems to be benefitting from signs of bottom fishing as well as a broader rebound in sentiment around the crypto market, ” said Arijit Mukherjee, Founder of Yunometa.
“Given SHIB’s massive social media presence and a dedicated fan base, it’s not difficult to see why the coin has climbed on the back of DOGE’s rally,” he told ETMarkets.
The latest rise in Shiba Inu has pulled its market cap to the $6.4 billion mark, making it the 13th most valuable crypto token after the stablecoin Dai and Polkadot. Shiba Inu was at the 17th spot during the last week.
However, the volumes of Shiba Inu have taken a hit as coins worth $622.59 million were traded in the last 24 hours, the coinmarketcap data suggested.
Shiba Inu is still 50 per cent down from what it was three months ago. Such recoveries are possible within the bear market, but it is not sustainable in the long run, warn the market experts.
Vikram Subburaj, CEO, Giottus Crypto Platform, said that the V-shaped recovery in Shiba Inu was manipulated by ‘whales’ (large holders). Shiba Inu is one currency with a large presence of ‘whales.’
“Shiba is yet to unravel any underlying value. It is good to see all crypto in the green, thanks to tech stocks and other positive market factors,” he added.
One has to be mindful of the macroeconomic conditions that could come back to hurt the market later in July. So, it is better to adopt an observant and prudent approach, suggest experts.
Taaran Chanana, MD and Co-Founder, MemeChat, said that Shiba Inu is launching a new upgrade to their layer or blockchain which will reduce the transaction fees considerably, possibly to zero. This does not happen in 90 per cent of the other currencies which is leading to such high growth, he added.
According to WhaleStats’ recent tweets, large Ethereum whales are buying a great amount of Polygon’s native coin MATIC, which may dent Shiba Inu’s appeal in the near term.
