The Shiba Inu (SHIB) token is back in fashion. The "Dogecoin Killer" has climbed up the market cap charts this week and has outperformed several giants in the ecosystem.
SHIB prices surged 368% over the past week.
Shiba Inu's market cap is now larger than UNI, AVAX, LTC, and LINK.
Part of the pump is related to Elon Musk's tweets about his puppy.
The Shiba Inu token has climbed to 12th place on the crypto market cap charts after gaining more than 50% in 24 hours. SHIB's price spiked at the end of U.S. trading when it hovered around $0.0000225. It rose to a high of $0.0000336 during the morning of October 7 before retreating slightly.
SHIB's market cap is larger than Uniswap (UNI), Avalanche (AVAX), Litecoin, and Chainlink. However, it is not the highest price for the meme cryptocurrency, having reached an all-time high of $0.0000379 on May 10.
What's behind the rise of Shiba Inu?
The rally even made it into the mainstream media, with Bloomberg attributing the Shiba frenzy to a tweet Elon Musk posted earlier this week. He referenced his puppy, Floki. One of the many Twitter feeds dedicated to Shiba Inu also attributed the token's price increase to Musk's social media posts:
Another Twitter feed claims that there are now more than 700,000 SHIB holders. Shiba Inu has a fan base similar to Dogecoin called "Shib Army."
And, in yet another milestone, @etherscan reports that we have crossed the mark of 700,000 SHIB holders! We are not stopping growing anytime soon! Welcome new holders to the #ShibArmy! We are now well on our way to reach 1M holders! #Shibarmy1M #1MFRIENDSHIBS
Musk is no stranger to pumping altcoins, as he did the same thing with Dogecoin earlier this year. The ensuing frenzy sent DOGE prices soaring to an all-time high of $0.731 on May 8. The lack of subsequent DOGE tweets from the billionaire entrepreneur has caused interest to wane and Dogecoin to fall to 66% from that peak. In mid-September, Musk tweeted a similar image of his puppy, resulting in the rise of another meme token derivative called Shiba Floki (FLOKI) at the time.
Half a quadrillion tokens
There is a total supply of one quadrillion SHIB tokens with half of them in circulation, which explains the minuscule price. The small unit price also plays into the psychology of speculators who can buy millions of them for a few dollars.
Their anonymous founder "Ryoshi" locked up 50% in Uniswap, then gave the other half to Ethereum co-founder Vitalik Buterin in mid-May, who burned them and donated the proceeds to charity.
Shiba Inu climbs into the top 20 major cryptocurrencies
The doggy-image meme token Shiba Inu (SHIB) has made it into the top 20 largest digital assets by market capitalization on Thursday after its price soared more than 300% in the past few days.
The upward movement has propelled it to the top 20 among cryptocurrencies with the largest market capitalization volume. In its surge, SHIB has even outperformed several veteran digital currencies in the market, including Litecoin (LTC) and Bitcoin Cash (BCH).
According to data from Coinmarketcap, the SHIB token recorded a 389% growth in the last seven days and is trading for $0.00003445, very close to its all-time high recorded in May. Meanwhile, Dogecoin's market capitalization amounts to $13 billion, almost half of its rival Dogecoin's (DOGE) capitalization volume of $33 billion.
While such moves are not unusual in the digital currency market, SHIB's sudden price spike has caught the attention of community members who wonder if there is a reason beyond mere price speculation.
Shiba Inu's price soars more than 350%.
Among those questioning SHIB's massive price increase is rapper and music producer Busta Rhymes, who is becoming an increasingly loud voice in the cryptocurrency community.
During the token's rise, Rhymes took to Twitter to ask about the cryptocurrency. The celebrity seemed surprised by the spike, especially since some had warned him to stay away from the "scam project," as he put it.
Meanwhile, some indicators suggest that the growing acceptance and commercialization of the currency could be one of the key points behind its latest rally. Shiba Inu's trading volume has recently skyrocketed, mimicking the price increase. Also, SHIB's Twitter account said yesterday that it had crossed the 700,000 token holder mark while its followers reached 1 million.
The coin's trading and user growth came after Elon Musk posted an image of his new Shiba Inu breed puppy on Twitter, a move that may have contributed to SHIB's price increase.
Launched in 2020, Shiba Inu is a token based on the Ethereum Blockchain that has generated a lot of controversies this year. Half of SHIB's supply allocates in the wallet of Ethereum founder Vitalik Buterin, who then burned 40% and donated the remaining 10%. That move caused the price of the coin to plummet.
It's worth noting that SHIB's meteoric price growth comes amid a widespread bullish rally for the crypto market. Bitcoin has risen nearly 30% in the last week, conquering the $55,000 barrier once again. The second-largest cryptocurrency, Ethereum, is also registering a significant increase and is trading around $3,500. The movement replicates among the market's most important digital assets.