In the cryptocurrency market today, attention is on the popular meme coin Shiba Inu (SHIB). Billions poured into the Shiba Inu market, and within 24 hours, the SHIB price had skyrocketed.
Shiba Inu made a great attack, price skyrocketed
Meme coin Shiba Inu (SHIB) experienced a significant price correction in 2022. Interest in SHIB then gains momentum with increased capital flow. This was the impetus that drove the token to rank as the 12th largest digital asset by market cap, surpassing Avalanche (AVAX).
The resurgence of SHIB is associated with overall crypto market gains led by large-cap assets like Bitcoin (BTC) and Ethereum (ETH). Indeed, according to CoinMarketCap data, as of August 14, SHIB’s market cap was $8,720 billion, gaining $1.76 billion from $6.96 billion in the last 24 hours.
SHIB one-day market cap chart / Source: CoinMarketCap
Elsewhere, the capital inflow trend is reflected in the SHIB price, which extends the weekly positive momentum streak. According to press time, the token was trading at $0.00001621, gaining about 28% in 24 hours.
Shiba Inu one-day price chart / Source: CoinMarketCap
SHIB earnings in line with the overall market
The Shiba Inu floundered, especially in the first half of 2022. However, it has started trading in the green zone in recent weeks. It also showed signs of recovery that started in July with gains associated with the overall market. Historically, altcoins have been known to follow trends created by large-cap assets like Bitcoin. On this line, in the early trading hours of August 14, Bitcoin hit the market by breaking the $25,000 level for the first time since mid-June.
SHIB earnings are partially tied to the overall market. However, it is worth noting that network development creates the money for earnings. The token sought to regain its 2021 highs with the network event launched to make the coin more attractive. The focus of the developer community is to drive more token burns to drive adoption. Additionally, experts see the release of ShibaSwap in 2021 as a key driver of SHIB value for the coming months.
Attractiveness of meme coins among investors
Also, in the midst of the market correction, meme coins in general lost their appeal among investors. The lack of significant use cases was cited as a major reason for this. Specifically, global search queries for the keyword ‘Shiba Inu’ in the last 12 months fell to their lowest point in more than a year in July. Thus, Google Trends data highlighted the lack of interest.
Interestingly, despite the price drop, the number of transactions on the network was not affected. As cryptokoin.com reported, meme coin transactions in July rose 34% to 211,833, gaining from 157,889, a 15-month low recorded in June. Additionally, Shiba Inu, among other meme cryptocurrencies, has built a reputation that has generated substantial profits for early investors. This has prompted some investors to continue betting on the asset despite the market correction. Meanwhile, between June and July, SHIB added more than 20,000 new investors as interest in the decentralized finance (DeFi) asset returned.
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