What’s Behind Shiba Inu (SHIB) 30% Bull Rally

18 January 2023, 13:49 GMT+0000
Updated by Ali Martinez
18 January 2023, 13:51 GMT+0000
In Brief
  • Shiba Inu (SHIB) is experiencing a surge in value, with a 15.2% increase over the last 24 hours and 31.2% over the past seven days.
  • Altcoins like SHIB often experience strong growth following market leaders such as Bitcoin and Ethereum, due to traders reinvesting profits from larger assets into smaller ones.
  • The team behind Shiba Inu is developing a new layer-2 network, Shibarium, that will operate on top of Ethereum, which they argue will reduce costs and increase transaction speeds.
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Shiba Inu (SHIB), a meme-inspired cryptocurrency, is seeing a surge in its value. Data from BeInCrypto shows SHIB’s price has risen by 15.2% in 24 hours and 31.2% in the past week. Despite its small market capitalization, SHIB is currently ranked as the 14th-largest digital asset, with a price of $0.000012.

Shiba Inu SHIB Price
Source: BeInCrypto

The so-called “Dogecoin killer” is also experiencing a significant boost in trading volume. With a nearly 200% increase in 24-hour trades, and exchanges Binance and Coinbase hosting the majority of these trades.

Shiba Inu (SHIB) Price Is Breaking Out

This recent rally in SHIB’s value is not uncommon in the cryptocurrency market. Atcoins often experience strong growth following the market leaders, such as Bitcoin and Ethereum. This could be due to traders reinvesting profits from larger assets into smaller ones.

Data from Santiment shows that the amount of SHIB tokens being transferred to exchanges saw a massive spike on January 10. Over 14 trillion tokens deposited on exchanges on this day alone. This could indicate that these holdings are being used to open derivative positions rather than being sold in the spot market.

Shiba Inu SHIB Price
Source: Santiment

Still, an increase in derivatives trading could also lead to increased volatility if long positions begin to liquidate.

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The team behind Shiba Inu recently announced that they are developing their own layer-2 network, called Shibarium, that will operate on top of Ethereum.

In a blog post, the team acknowledged that “some see Shibarium as a price pumping tool.” But, that is “not the project’s focus and never has been.” Instead, the team believes that their new layer-2 network will reduce costs and increase transaction speeds for the tokens in its ecosystem.

Disclaimer

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