New records keep happening every day for SHIB, but what’s the true meaning behind SHIB’s ambitious mission?
After Dogecoin (DOGE) rebounded above $0.01 to new highs, meme currencies entered the scene in early 2021, helping to begin the bull market. They were promoted by famous billionaires like Mark Cuban and Elon Musk.
Dogecoin inspired a number of tokens with dog themes, however, SHIBA INU was the most successful project of them all as it kept rising higher.
The crypto giant reclaimed its previous all-time high, with the meme token quickly following. What is interesting to note is that SHIBA INU is going even faster than some of the largest cryptocurrencies on the market. It has reached new highs, especially in the last two weeks leaving the investors perplexed and wondering how this could have happened.
At the beginning of October, it was trading at only $0.0000069 and since then SHIBA INU has soared 914 % higher to a new high of $0.0000699 on Oct. 27, with a 137 % increase in 24-hour trading volume to $24.67 billion, as reported by Cointelegraph Markets Pro and TradingView.
So, what exactly are the key reasons behind this massive success? The listing of SHIBA INU on numerous exchanges, the debut of its own line of Shiboshi nonfungible tokens (NFTs), and SHIB’s increasing open interest on derivative exchanges are those three causes for the increase in price and trading volume.
Reason #1: Exchange listing of SHIBA INU
The token got listed on various cryptocurrency exchanges which made it more easily accessible to all people. This increased access to SHIBA INU during the past month has greatly helped its price to get higher.
The BitKan exchange, AOFEX, StealthEx, and CoinFlex are among the main names of the new listings for SHIBA INU and the protocol’s LEASH coin. To mark the listing of LEASH, Change Now initiated a “flip DOGE for SHIB campaign.”
Something else that changed its market was the collaboration with NOWPayments, the crypto payment provider. As a result, SHIB and LEASH can now be accepted as a method of payment, used for donations, and utilized to issue salary in crypto via the mass payment tool.
Moreover, 3% of NOWPayments’ profit from all SHIB transactions will be burned as a deflationary feature.
Reason #2: SHIBA INU NFT Release – Shiboshi NFTs
The other reason to follow is SHIBA INU’s debut of its own line of NFTS called Shiboshi.
Projects that want to increase user participation and interaction often rely on NFTS, as the latter remains one of the most entertaining sectors of the crypto industry.
10,000 authentic NFTs were included in the Shiboshi drop and users had only 1 day to buy them by using the protocol’s LEASH token.
All Shiboshi coins have been minted and are now available on the OpenSea NFT marketplace.
Reason #3: Increased Open Interest
The spike in futures open interest (OI) on numerous crypto exchanges, including OKEx, FTX, and Huobi, is the third cause for SHIB’s rising strength.
As the price of SHIB skyrocketed to a new all-time high, the OI for SHIB jumped from $15.7 million on October 3 to a record $178.95 million on October 27.
Instead of a meaningful increase, open interest appears to be following the price pump, reports Marcel Pechman, market analyst, and Cointelegraph contributor.
While it’s usually expected for sellers to have their position liquidated during bull runs, this did not happen in this recent run-up. This implies that traders either “doubled the short by adding more margin,” which Pechman believes is unlikely, or “those are market makers who are fully hedged’ and do not worry much about the price.
The open interest would have dropped if there had been a lot of liquidations, concludes Pechman.
Prior to the latest price surge, VORTECS data from Cointelegraph Markets Pro started to notice an optimistic prognosis for SHIB on Oct. 24.