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

1 min
Updated by Ali Martinez
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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.

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.

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Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

This article was initially compiled by an advanced AI, engineered to extract, analyze, and organize information from a broad array of sources. It operates devoid of personal beliefs, emotions, or biases, providing data-centric content. To ensure its relevance, accuracy, and adherence to BeInCrypto’s editorial standards, a human editor meticulously reviewed, edited, and approved the article for publication.

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Ali Martinez
Ali Martinez is the Global Head of News at BeInCrypto, specializing in market analysis, emerging trends in the crypto industry, Bitcoin’s four-year cycle, and macroeconomic developments. Previously, he covered the altcoins market for Crypto Briefing, CryptoSlate, CCN.com, and NewsBTC. His reporting focused on the ICO boom, Ethereum's evolution, Bitcoin halvings, and network upgrades like hard forks and soft forks, emphasizing the impact on digital asset valuations. At Binance and FXStreet,...
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