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Why Has Shiba Inu’s (SHIB) Price Skyrocketed by 25% Today?

Summary:
TL:DR; Shiba Inu is among the top three best-performing assets in the cryptocurrency industry today, surging by over 25% to a multi-month peak. Here are some of the possible reasons behind this massive rally. Shiba Inu on the Run Donald Trump’s victory in the 2024 US presidential elections impacted all financial markets, but the ever-volatile crypto industry is at the forefront of gains. This is particularly true this weekend since all other markets are closed, but crypto is open for trading. After the initial days of Bitcoin-only gains, the altcoins caught up in a spectacular fashion. Amid speculations about a potential meme coin supercycle, assets from that niche have taken the main stage today. Their leader, Dogecoin, jumped by 20% to a three-year high today and

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TL:DR;

  • Shiba Inu is among the top three best-performing assets in the cryptocurrency industry today, surging by over 25% to a multi-month peak.
  • Here are some of the possible reasons behind this massive rally.

Shiba Inu on the Run

Donald Trump’s victory in the 2024 US presidential elections impacted all financial markets, but the ever-volatile crypto industry is at the forefront of gains. This is particularly true this weekend since all other markets are closed, but crypto is open for trading.

After the initial days of Bitcoin-only gains, the altcoins caught up in a spectacular fashion. Amid speculations about a potential meme coin supercycle, assets from that niche have taken the main stage today. Their leader, Dogecoin, jumped by 20% to a three-year high today and surpassed Ripple (XRP) as the 7th-largest digital asset.

The second-largest, Shiba Inu, has performed even more impressively over the past day. SHIB has soared by 25.5% and briefly exceeded $0.000027 earlier today for the first time since early June. On a weekly scale, the meme coin has risen by roughly 45%, and its market cap is well above $14 billion now.

SHIBUSD. Source: TradingView
SHIBUSD. Source: TradingView

Although SHIB is still down by 70% from its all-time high registered in late 2021, many optimistic traders have begun suggesting that the asset has the legs to break that peak during this bull cycle.

But Why Up So Much Today?

The popular ChatGPT rival, Perplexity, listed the overall market momentum as the number one reason behind SHIB’s surge. Secondly, and perhaps slightly related, is the meme coin resurgence, which we talked about earlier. Numerous such representatives have charted impressive gains, likely because of the promise of quick gains due to their volatile nature and better performance in times of bull runs.

Perplexity also mentioned the increased token burns. Shiba Inu’s protocol destroys SHIB tokens to reduce the overwhelming supply and potentially make the asset more valuable in time. The burn rate skyrocketed by 60% in the past 24 hours.

Lastly, the ChatGPT alternative outlined ecosystem developments that might have helped SHIB surge by double digits today. After all, the team behind the project has launched several new initiatives in the past few years, such as Shibarium, which have helped enhance SHIB’s utility and popularity in the market.

Nevertheless, meme coins remain the most volatile part of the cryptocurrency industry, and they can go down as quickly as they go up. Investors should do their own research and know the risks before allocating funds to them.

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