Why Has The Price Of Shiba Inu Shot Up? Let’s Find Out

With cryptocurrency being such a volatile asset, it is unsurprising to see the value of one currency shooting up and crashing in a matter of days. Other than the volatility of the market, cryptocurrency is also affected by global markets, current events, viral internet trends and more such factors. These are often the driving force behind cryptocurrencies doing well. 

The cryptocurrency shiba inu experienced one such phenomenon where the value of its token SHIB went up by more than 50% making it a profitable time for seasoned investors as well as novices who wanted to buy shiba inu coin for the first time. Let’s take a look at why the prices went up and where this cryptocurrency stands now. 

What Drove The Price Surge?

The price of shiba inu went up due to various reasons and events that took place close to each other. In other words, it was a matter of good timing. The cryptocurrency that started off as a joke turned really serious really fast when news about its ‘Shiberse’, a virtual metaverse for the SHIB ecosystem came out. 

The developer of SHIB also announced two new tokens called LEASH and BONE. BONE was designed to function as a governance token so as a result, people who possess BONE would be able to vote on issues that are important to Shiba’s DAO (Decentralized Autonomous Organization). LEASH with a current supply limit of 107,646, is distributed to those that offer liquidity to Shiba’s DeFi (Decentralized) ecosystem. Only LEASH holders would be allowed to purchase LAND in the newly established Shiberse. 

Prior to this news, seasoned crypto investors who specifically focus on Ethereum bought SHIB tokens worth millions of dollars which was followed by a coin burning exercise. A crypto coin-burning exercise basically implies that a particular amount of crypto coins are delivered to an off-market crypto wallet address. It is a wallet address in which no one has access to the private key. These tokens cannot be retrieved without the secret key and are lost permanently. This is mainly done in order to reduce the supply of coins in circulation which then causes the market price of existing tokens to increase. 

Other than this, the price of the SHIB token shot up after the news that Shiba Inu was listed on crypto platforms such as Coinbase, Binance and Robinhood markets. For a long time, the shiba inu community has been vying for a listing on Robinhood as it is one of the most popular exchanges for day traders. The shiba inu token witnessed a rise of almost 35% after the listing on robinhood. Robinhood also lists the following tokens for trading :

• Bitcoin
• Bitcoin Cash 
• Bitcoin SV
• Dogecoin
• Ethereum
• Ethereum classic
• Litecoin

So far only these cryptocurrencies can be traded on the Robinhood exchange and the exchange provides market data for the following cryptocurrencies but hasn’t listed them for trading yet:

• Bitcoin Gold (BTG)
• Lisk (LSK)
• Monero (XMR)
• NEO (NEO)
• OmiseGO (OMG)
• Qtum (QTUM)
• Ripple (XRP)
• Stellar (XLM)
• Zcash (ZEC)

Where Does Shiba Inu Stand Now?

After the major surge witnessed by Shiba Inu, the cryptocurrency saw a steep decline, continuing for several weeks. This erratic drop in the cryptocurrency’s value was due to various reasons such as low trading volume in the past few months, lack of utility of the token and inflation in the markets and the Fed’s plans to combat inflation by increasing interest rates. Shiba inu is currently trading at $0.000008171 at the 17th position.

Apart from the global happenings, the crypto market is currently in a slump and the values of all tokens have gone down significantly as compared to the beginning of the year. Among the major cryptocurrencies that saw a steep fall in their prices were Cardano (ADA) by 23.39% at $0.4863, Algorand (ALGO) was down by 27.04% at $0.4339, Binance Coin (BNB) was down by 18.42% at $262.59, Solana (SOL) was down by 29.6% at $47.91, Polkadot (DOT) was down by 25.57% at $8.53, and Ripple (XRP) was down by 35% at $0.45 (XRP to INR). 

It is predicted that the cryptocurrency market will see an upward rise in the coming months and crypto investors have been advised to ride out this current uncertain wave. With exigent matters taking place around the globe, the global markets are going to continue to be volatile in the foreseeable future.