Why is the Shiba Inu (SHIB) Price Up Today?

The NFT Unicorn SHIB-RALLY_CB-2 Why is the Shiba Inu (SHIB) Price Up Today? Crypto News

TL;DR

  • Shiba Inu’s price surged by almost 7% amid a broader market rally and optimism for a significant bull run ahead of the Bitcoin halving.
  • The meme coin sector’s revival, including SHIB, is marked by substantial gains and an increase in investor profits (at least on paper).

Catching The Green Wave

The price of the popular meme coin – Shiba Inu (SHIB) – finally managed to escape the consolidation levels it has been hovering for the past several weeks. It soared by almost 7% in the last 24 hours, whereas its market capitalization surpassed the $6 billion mark for the first time since mid-January.

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SHIB Price, Source: CoinGecko

The token’s upswing coincides with an overall market resurgence, with Bitcoin (BTC) and Ethereum (ETH) tapping multi-year highs of approximately $56,700 and $3,200 (respectively). The global cryptocurrency market capitalization currently stands at more than $2.2 trillion, around $800 billion away from the ATH recorded in November 2021.

Numerous industry participants believe this might not be just a brief spike but the beginning of a massive bull run that could take BTC and other digital assets to unseen peaks. The upcoming halving (scheduled for April) supports that thesis. It reduces the rate at which new Bitcoins are produced, potentially making them more valuable if following the economic fundamentals of supply and demand (in theory).

Historically, the event has been followed by a BTC price rally that has positively impacted the altcoins, such as Shiba Inu.

Observing Additional Factors

Another element that might have fueled SHIB’s latest price increase is the revival of the meme coin sector. Pepe Coin (PEPE), dogwifhat (WIF), Bonk Inu (BONK), and many others have charted double-digit gains on a daily scale, while Dogecoin (DOGE) – the largest in the realm with a market cap of over $13 billion – is up around 7%.

Shiba Inu’s uptick coincides with an increased SHIB aggregated daily volume (where each transaction was greater than $100,000). According to IntoTheBlock, the figure currently stands at $31.6 million (a 164% growth compared to yesterday’s numbers).

As of the moment, nearly 39% of SHIB investors sit on unrealized profits. In comparison, almost 90% of holders were underwater in September last year.

As CryptoPotato reported recently, the daily active addresses of Shiba Inu are also on the rise, increasing by more than 15% yesterday.

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Source: CryptoPotato