One of the big news hitting the mainstream from the crypto space is how Shiba Inu (SHIB) turned a SHIB holder into an overnight crypto billionaire. You may not call it an “overnight” phenomenon because this is a 12-month outturn for the SHIB investor. Around August last year, the unknown SHIB holder purchased Shiba Inu worth $3,400.
As of October 28th 2021, the coin value grew to $1.55 billion due to the price growing beyond 94,278,239.8% over a year. The anonymous holder shared the wallet address to ask a question about the liquidity of the SHIB market to absorb $5,700,000,000 wallet sales. This unknown holder became a crypto billionaire from an August purchase.
SHIB Leading DOGE in DOGE’s Bull Scheme
Shiba Inu can be regarded as a crypto sister to Dogecoin. SHIB was launched in 2020 following a big inspiration from Dogecoin (DOGE). But it appears SHIB is beating DOGE in its bull scheme while leveraging the lessons from Doge’s bullish market performance. As of October, SHIB price upward call beat the parent crypto rivals such as Bitcoin and Ethereum.
SHIB may appear to be emulating Dogecoin in its bull scheme, but SHIB has a dynamic approach to support its price hike. SHIB’s long-term profit is the primary target, and participants are applying critical lessons from the consolidation and break phases of Dogecoin.
However, parts of what set Shiba Inu apart from DOGE in this bull race is the community support it receives in the form of launching its NFT project known as Shiboshi, a retail announcement of new listings on various crypto exchanges, and the belief that meme is worthy of investment since its popularity in 2021.
Elon Musk’s Revelation Dragged SHIB Down by 20%
Since the inspiration from Dogecoin, Shiba Inu keeps breaking its all-time highs. But this bullish wave suffered a 20% downward blow after a community interaction with Elon Musk. Elon Musk has been regarded as the pseudo-CEO for Dogecoin, and he has been actively involved in impacting the market via his words and support.
Meanwhile, a curious crypto participant—ShibaInuHolder—engaged Elon for an unknown purpose, except what’s evident to the public. He asked for the amount of SHIB Elon Musk is holding since it has its bull run. Elon responded that he didn’t own any of the meme coin, which caused a retracement.
Elon Musk’s response met with different market reactions from Shiba Inu investors. Above all, the market suffered a 20% price fall. There was heavy criticism for such critical engagement, and some users condemned ShibaInuHolder for acting in such a manner. But Elon went ahead to re-establish his support for DOGE by revealing that professionals from Tesla’s production lines are DOGE investors.
3 Reasons for Shiba Inu Bullish Movement
The bullish momentum of the meme coin, Shiba Inu, is associated with some three reasons. It is noteworthy that meme coins became a mainstream conversation in early 2021 as DOGE gained popularity after being patronized by Elon Musk and Mark Cuban. SHIB keeps coming with different all-time highs taking after Dogecoin’s bullish run. Each new price hit is higher than the previous one.
Curiosity made parties investigate the factors contributing to this bullish run. This investigation resulted from the meme coins not banking on price impacts from significant cryptocurrencies like Bitcoin nor depending on support from the influence of big names. Those three reasons for the bullish momentum are explained briefly below.
- Increased SHIB access by exchanges
The primary factor causing an increase in the price of Shiba Inu is the recent listings that happened across different crypto exchanges. This increases users’ access to the meme coin. AOFEX, CoinFlex and StealthFX are the new exchanges that listed SHIB recently. Another factor is the partnership announcement by NOWPayments, a cryptocurrency payment provider.
With this partnership, organizations can receive donations, and employees can receive salaries as crypto payments. Likewise, 3% of the profit from SHIB transactions will get burned. That’s an advantageous deflationary feature.
- Shiboshi NFTs launching
Another reason Shiba Inu gained more price strength is launching its non-fungible tokens (NFTs), referred to as Shiboshi. NFTs are becoming the central discourse in the crypto community. The community believes that a coin with NFT projects will gain more interaction and support.
All the Shiboshi’s are minted, and 10,000 individual NFTs dropped based on LEASH token protocol. Likewise, they are now made available on the OpenSea NFT marketplace.
- Increased open interest
The next big reason that made SHIB’s price keep holding high is the dynamism that comes with the open interest in the meme coin. As opposed to the actual behavior of the market participant, there is always hue liquidation during bull runs. But it is not happening with Shiba Inu.
Instead, the margin keeps increasing, and participants are interested in the profit from longs. This future open interest appears across different exchanges such as FTX, Huobi and OKEx. The price pump is the market motivator instead of the actual price increase. Thus, we have market markers instead of those interested in “pump and dump.”
Will SHIB Slide Like DOGE?
As it appears to the crypto community, Shiba Inu’s future may be sustainable to some extent. This is due to the reliability coming from the open interest and the launch of Shiboshi. This community support is creating a different part for SHIB as opposed to DOGE that lacks all of that. Hence, it may not slide like DOGE.
However, there are warnings about the stability of SHIB being challenged and how this can make the value drop happen. This pattern existed before, and the token may slide on its value while being charged by some other meme projects.