The Meme coin exploded on the scene in early 2021, helping to boost the bull market after Dogecoin (DOGE) surged above $0.01 to new highs while being bribed by the likes of Elon Musk and Mark Cuban.
The Meme coin exploded on the scene in early 2021, helping to boost the bull market after Dogecoin (DOGE) surged above $0.01 to new highs while being bribed by the likes of Elon Musk and Mark Cuban. Before long, clones of Dogecoin and other dog-related tokens seemed to be catching a wave of bullish inertia, and Shiba Inu (SHIB) was one of the projects that was quickly catching the wind and sailing higher.
Now that Bitcoin (BTC) has hit a new high again, it looks like the meme token is ready to make a move, and this time, they're not waiting for an influential big name to join in. In the past two weeks, SHIB has jumped to new heights and confused cryptocurrency traders are scratching their heads for that reason. Recent data show that the price of SHIB has risen 914% from a low of $0.0000069 on October 1 to a new record high of $0.00000699 on October 27, as its 24-hour trading volume has increased 137% to $24.67 billion.
Three reasons why the Shiba Inu is soaring in price and trading volume are its listing on multiple exchanges, the launch of Shiboshi's own irreplaceable token line (NFT), and SHIB's growing open interest in derivatives exchanges. There are three main reasons as to why the price of SHIB keeps increasing and they are as given below:
Exchange listings increase access to SHIB
- One of the biggest factors that helped drive up the price of SHIB over the past month was the increase in consumer access to the token, thanks to its listing on many cryptocurrency exchanges.
- New announcements for the SHIB and LEASH token protocols include BitKan, AOFEX, StealthEx and CoinFlex exchanges. Change Now also launched the "Flip DOGE Campaign for SHIB" to celebrate its LEASH presentation.
- The ecosystem is also gaining momentum after it was announced that a partnership with crypto payment provider NOWPayments has allowed SHIB and LEASH to be accepted as payment for donations and available for payments in cryptocurrency via mass-function payments.
- As an added deflation function, 3% of the profits received NOW from all SHIB transactions are burned.
- The second reason for building Shiba Inu's power is the introduction of its own line of NFTs known as Shiboshi's.
- NFT remains one of the most popular sectors of the cryptocurrency ecosystem and a reliable way for projects to increase their interaction and support in the community.
- Shiboshi drops include 10,000 individual NFTs, and community members have 24 hours to purchase them using the protocol's LEASH token. All Shiboshis have been cut and listed on the OpenSea NFT marketplace.
Increase in open interest
- A third reason for the growing strength of SHIB is the increasing Open Interest (OI) for futures on several exchanges, including OKEx, FTX, and Huobi.
- What is interesting to note is that while it’s “usually expected during bull runs for sellers to have their position liquidated,” that did not happen in this recent run-up which means traders either “doubled the short by adding more margin,” which Pechman sees as unlikely, or “those are market makers who are fully hedged and don’t care about the price.”
- “Longs are in huge profit, so it's easier for them to keep buying spot and pushing the price up. There seem to be no 'real' short-sellers, only market makers. Had there been huge liquidations, the open interest would have gone down.”