Shiba Inu (CRYPTO: SHIB) is up 45.63 percent in the last 24 hours to $0.00001588 per share. The coin’s meteoric rise coincided with Tesla CEO Elon Musk’s social media mention of the “Dogecoin killer” cryptocurrency. As a result, Shiba Inu is now the world’s 33rd most valuable cryptocurrency, with a market capitalization of $6.42 billion.
Shiba Inu, a digital currency, increased by 69 percent in 24 hours, tripling its value in a week.This puts its market value above $10 billion, according to Coinbase, making it the world’s 20th-largest cryptocurrency.
Cryptocurrency is notoriously volatile, but during the pandemic, interest in digital currency has soared, helping to keep its value high.This latest rise comes on the heels of a general uptick in digital currencies, which saw bitcoin hit a high of $50,000. Smaller coins, such as the Shiba Inu coin, have emerged as new favourites in its wake.
But what exactly is a Shiba Inu coin, and why did it suddenly jump?
What are Shiba Inu coins?
Shiba Inu coins were created in August 2020 by an unknown person known only as Ryoshi, who is thought to be based in China.
It’s “a decentralised meme token that evolved into a vibrant ecosystem,” according to the coin’s website.
Dogecoin, the more mainstream memecoin that was created as a satirical take on bitcoin, inspired the creation of the token.
Shiba Inu, named after the Japanese dog breed, began trading at a low level but quickly increased. It even outperformed Dogecoin, earning the moniker “Dogecoin killer.”
On September 16, 2020, it was listed on the major crypto exchange platform Coinbase, and it is now used for payments by some sports teams and theatres.
Why did Shiba Inu Value Increased?
For a few months, Shiba Inu has been popular among crypto enthusiasts. Elon Musk tweeted a picture of his Shiba Inu puppy Floki in a Tesla, prompting this latest leap. That’s right, you read that correctly.
Altcoins like the Shiba Inu token are easily swayed by small market changes, news stories, or the social media activity of tech billionaires because they are less established.
This isn’t the first time a Tweet has had an impact on cryptocurrency prices.
Tesla’s founder and Chief Engineer at SpaceX, Elon Musk, has shifted the value of bitcoin, the most well-known cryptocurrency, several times.
When Musk added #bitcoin to his Twitter bio at the start of 2021, the price of bitcoin jumped nearly 20% in a matter of hours, from $32,000 to nearly $38,000.
When he Tweeted about Dogecoin, he experienced similar outbursts. When he said “bitcoin is bs,” he also caused a drop in value.
Following Musk’s tweet, the value of the Shiba Inu coin has increased by 55 percent, with volumes increasing by 770 percent.
After Elon Musk’s tweet, the shiba inu coin has increased 55%.
Following Musk’s tweet, crypto enthusiasts went crazy for SHIB, with volumes surging by over 770 percent in just one day.
Musk’s favourite cryptocurrency, Dogecoin, has a mascot of the same breed. Netizens have dubbed Tesla CEO Elon Musk the “Dogefather.”
Musk, on the other hand, isn’t the only reason for Shiba Inu’s sudden vertical rise.
According to Ishan Arora, Partner at Tykhe Block Ventures, a crypto hedge fund, the Shiba Inu team appears to be working on a project.
“However, it began as a meme coin with no use case,” he added, “but that is changing as the team appears to be working on certain things, such as a decentralised exchange.”
Not only Shiba Inu, but also Husky and Shiba Cash, two meme tokens, soared by 140 percent and 75 percent, respectively. Akita Inu, Baby Doug, Doggy, Kishu Inu, and Pitbull all saw gains of 15 to 35 percent.
On Tuesday, Musk’s favourite cryptocurrency, Dogecoin, jumped 12% to $0.2484, reclaiming its position as the ninth largest cryptocurrency by market capitalization.
According to market experts, the crypto market is still in its infancy. As a result, it reacts to erratic figures like Musk.
According to Arora, investors should avoid one-time wonders until there is more substance behind them.
“Most people don’t understand their investment thesis and instead rely on influencers to buy meme coins,” he said. “However, early Doge investors made a lot of money last year, so it’s not as black and white as most people think.”