Amid the fall in the price of bitcoin, which wiped hundreds of billions of dollars from the crypto market, a meme coin bucked the trend by hitting a new all-time high on Wednesday.
The Shiba Inu (SHIB) grew by more than 42 percent, with an increase of over 700 percent since the beginning of October. Even more notable, the Dogecoin rival is up more than 700,000 percent since January.
Follow GranthshalaLive coverage of the crypto market
The price rally has taken the Shiba Inu’s market cap above $20 billion, making it the 11th most valuable cryptocurrency in the world, just after Dogecoin.
Similar to Dogecoin, the token is derived from the Doge meme which first gained popularity in 2013, its price is driven by the meme-loving community.
The skyrocketing price appears to be related to speculation that the popular trading app Robinhood may soon make it available for clients to trade and invest in. A petition calling for Robinhood to be listed has already received more than 340,000 signatures.
“Dogecoin has been a huge success for Robinhood and its investors,” petition states. “The Shiba Inu is a similar meme coin with real potential, up 2,000 percent over the past weeks… Let’s encourage Robinhood to become the first traditional brokerage to board this train!”
The Shiba Inu is currently only available for purchase on traditional cryptocurrency exchanges, such as Binance and Coinbase, although users on Wednesday reported problems with buying it, potentially resulting in the huge interest due to the rising price.
The price of the Shiba Inu has also benefited from a tweet by Elon Musk, who is a Shiba Inu dog owner and often supports Dogecoin.
The boss of SpaceX and Tesla revealed earlier this week that he does not in fact personally own any Shiba Inu coins, claiming that his personal crypto holdings did not extend beyond Bitcoin, Ethereum (ether) and Dogecoin. .
The popularity of the Shiba Inu has been described by some industry figures as a positive for the crypto market, as it is attracting more retail money into the space.
Other experts have cautioned people to exercise caution when investing in meme coins, as price movements are driven almost entirely by sentiment – which can change abruptly.
Michael Kammerman, CEO of crypto trading platform Skilling, said, “Social media and financial influencers are great at introducing the concept of cryptocurrency, but investors need to recognize the entertainment value that is happening online and delve deeper into crypto itself before making any decisions.” need to be seen.” Granthshala.
“It is a high-risk investment and as with any investment, you need to understand what you are investing in and make a rational, emotionally wise decision.”
Credit: www.independent.co.uk /