Why did the price of Shiba Inu (SHIB) soar 25% today?

TL:DR;

Shiba Inu is among the top three best-performing assets in the cryptocurrency industry today, rising more than 25% to a multi-month high. These are some of the possible reasons behind this big rally.

Shiba Inu on the run

The victory of Donald Trump in the 2024 US presidential election affected all financial markets, but the ever-volatile crypto industry is at the forefront of the gains. This is especially true this weekend as all other markets are closed, but crypto is open for trading.

After early days of Bitcoin-only gains, altcoins caught up in a spectacular way. Amid speculation about a potential meme coin supercycle, assets in this niche have taken center stage today. Its leader, Dogecoin, jumped 20% to a three-year high today and surpassed Ripple (XRP) as the seventh-largest digital asset.

The second largest, Shiba Inu, has performed even more impressively over the last day. SHIB soared 25.5% and briefly topped $0.000027 today for the first time since early June. On a weekly basis, the meme coin is up about 45% and its market cap is well over $14 billion now.

SHIBUSD. Source: TradingView

Although SHIB is still down 70% from its all-time high recorded at the end of 2021, many bullish traders have started to suggest that the asset has the potential to break this peak during this bull cycle.

Well, it turns out that old dogs still have some legs. OGs at the top of the pack, money will inevitably drop. $DOGE well beyond $1. $SHIB it will break the ATH as well. My feeling is that both $PEPE i $WIF advance $SHIB this cycle Time will tell but they will get closer pic.twitter.com/bxYSTrRcic

— Smitty (@SM1TTY41) November 10, 2024

But why go up so much today?

Popular ChatGPT rival Perplexity listed overall market momentum as the number one reason for SHIB’s rise. Second, and perhaps slightly related, is the resurgence of meme currency, which we talked about earlier. Numerous representatives of this type have recorded impressive gains, probably due to the promise of quick profits due to their volatile nature and better performance during bull runs.

Perplexity also mentioned the increase in token burns. The Shiba Inu protocol destroys SHIB tokens to reduce the overwhelming supply and potentially make the asset more valuable over time. The burn rate has shot up 60% in the last 24 hours.

Finally, the ChatGPT alternative outlined ecosystem developments that could have helped SHIB grow by double digits today. After all, the team behind the project has launched several new initiatives in recent years, such as Shibarium, which have helped improve SHIB’s usefulness and popularity in the market.

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

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