Shiba Inu’s (SHIB), continued its upward march on Oct. 27 with its price reaching a record high at nearly $0.000060, before correcting lower.
According to Binance data, SHIB rose more than 25% to $0.00005959 to reach an all-time record. This is a significant increase over its previous record of 0.00005000. This latest upside move pushed the token’s monthly-to-date returns (MTD) to around 726%. It is now the fifth-highest-grossing cryptocurrency in the last quarter of 2021.
SHIB’s October gains were close to 606% after a price correction. This was still more than any of its top-cap rivals like Bitcoin (BTC), Ether(ETH), Cardano [ADA] and Solana (“SOL”).
The October gains of the top five cryptocurrencies are ranked. Source: Messari
SHIB’s performance is still superior to its meme coin rival Dogecoin, (DOGE), which has only about 8% MTD gains. Shiba Inu’s market cap has reached $22.1 billion, the 11th largest — placing it just behind Dogecoin’s 31.53 billion 10th.
SHIB copies DOGE bull run?
After heavily influenced by Dogecoin (a joke cryptocurrency created in 2013 and named after the Japanese dog breed), Shiba Inu launched its first product in 2020. Dogecoin has been in high demand for eight years. It is used by AMC theaters, sports teams and as an investment vehicle. Tesla CEO Elon Musk has endorsed the token on social media.
DOGE’s price experienced an amazing upside boom during the first five months 2021. It soared more than 15,000% in a retail-led frenzy. The record-breaking $0.76 mark for the king meme token was reached on May 8. However, it fell by more than 68% to trade at $0.23 at press time.
Daily price chart for DOGE/USD Source: TradingView
Dogecoin experienced extreme trends over the past 12 months. It started with long periods of consolidation and ended with a bullish breakout that was followed by a huge price correction.
As the SHIB/USDT chart below shows, Shiba Inu’s recent price trends may have taken cues form Dogecoin’s breakout and consolidation phases.
SHIB/USDT daily chart with Dogecoin’s 3 phases Source: TradingView
The Shiba Inu market’s 1,500% price boom, which is Dogecoin-like, puts its long-term profit goal at $0.00013500. However, the fractal warns of massive price corrections towards the 20-day exponential moving median support (the green waves in these charts) as the price rises.
The overall dominance of the Shiba Inu in cryptocurrency markets has increased from 0.16% up to 0.91% MTD. Dogecoin’s market control has decreased from 1.5% to as low at 1.20% over the same time.
SHIB price macro fundamentals
Joe Wiesenthal, Bloomberg Markets editor, pointed out that Shiba Iu has “advanced Smart-Contracting capabilities,” which makes it more competitive than Dogecoin.
Shibaswap is a Uniswap-like, decentralized exchange that serves the SHIB community. It has liquidity mining, NFT, and it’s free! It has all of this. Dogecoin does not have any of these items right now.
Cointelegraph reported that the recent SHIB price rise may have been influenced by the launch of Shiboshis Social Club on Monday. These tokens are nonfungible Shiba Inu tokens (NFT) that can be used to reward members of the online Shiboshis community.
Retail seems to have been following Shiba Inu’s speculative bull market. A recent Bacancy Technology study showed that retail received an average of 2.8 million Google searches in 2021. This is third after Ethereum and Bitcoin.
Comparatively, Dogecoin’s search volume was the sixth-largest.
A petition to Robinhood asking them to list SHIB tokens in its zero-fee trading platform garnered more than 500,000 signatures. Vlad Tenev, CEO of Robinhood, stated Tuesday during the company’s earnings conference that Robinhood was considering adding new coins into its service portfolio. However, he did not mention their names.
This may have driven Shiba Inu’s stock price to a record high on Wednesday, signaling the booming retail interest for the meme crypto.
“Memes have value, and have been an investible thesis for 2021,” Jonathan Cheesman (head of institutional and over-the-counter sales at crypto-derivatives platform FTX), told Bloomberg. He added:
“Lower-price tokens for retail are appealing.”
Related: Shiba inu risk drops with SHIB’s October price rally at 574%.
However, Ben Caselin (head of research and strategy at crypto-exchange AAX) says that SHIB traders need to be cautious due to excessive speculation. He cites prior patterns that suggest that the token will likely “lose much of its value” as other meme projects challenge it.
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I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.