Shiba Inu, like dogecoin, is a meme token, whose logo is also a picture of a Shiba Inu dog. It is among the many dogecoin mimic coins, but the second most popular ones in this category.
Shiba Inu Gains Overwhelming Support
Shiba Inu seems to be taking over the support that dogecoin was enjoying earlier this year. One of the most notable changes that have happened in this coin’s support is that Elon Musk seems to be joining the Shiba Inu community, after remaining quiet about dogecoin.
Musk, Tesla’s CEO, has sent mixed signals on the meme coin that he supports. It all started with dogecoin, where he was attributed to the meme coin’s rally to all-time highs of $0.73. However, he later tweeted about Baby Doge, a dogecoin mimic coin that saw major price gains shortly after Musk mentioned it.
Now, it seems like it is the turn of Shiba Inu to experience the “Musk effect”. The “Musk effect” is a phrase that shows that the Tesla and SpaceX CEO has influence over cryptocurrency prices.
Musk’s support for Shiba Inu started when he bought a Shiba Inu dog that he named “Floki”. While this gesture could have been done to show support for dogecoin, the meme coin failed to rally, and instead, Shiba Inu made a surge to higher levels. Currently, whenever Musk tweets about a Shiba Inu dog, SHIB rallies, with the tweet having very little impact on dogecoin or any other meme coin.
Analysts have wondered why Dogecoin is failing to respond to Musk’s tweet’s, given that the billionaire has been very vocal regarding dogecoin and increasing use cases for the dogecoin network. Perhaps, the mystery could lie in the fundamentals of meme coins.
The uptrend of meme coins mainly depends on hype. This hype is available on social media platforms, with many traders rushing to buy out of fear of missing out (FOMO), and consecutively causing the prices to increase. Currently, the hype surrounding Shiba Inu is high and the gains that it has enjoyed over the past month are attracting even more buyers, signaling that new record highs could be achieved soon.
Unlike many meme coins, Shiba Inu has a reputation in the market, which is why it is able to maintain the gains it has made over the past week. Many meme coins that make the type of gains Shiba Inu has made in a short period, their prices end up collapsing after a while, but this does not seem to be the case with Shiba, as its gains have held for quite a while, and it is still showing signs of moving to greater heights.
Moreover, Musk’s tweets are not expected to end anytime soon, as the Tesla CEO is known for being a participant of the crypto markets, and while his tweets could not be regular, they contribute to a significant rally.
Can Shiba Inu Overtake Dogecoin?
Despite Shiba Inu making tremendous gains over the past week, the meme coin still has a lot to do if it intends to overtake dogecoin. Dogecoin is currently ranked as the ninth-largest cryptocurrency by market capitalization, while Shiba Inu ranks as the 13th largest cryptocurrency by this metric.
Dogecoin has very strong and staunch community support. The traders who purchased dogecoin in its early days have shown a strong belief in what the meme coin can offer, which is why a dogecoin investor such as Glauber Contessoto made headlines earlier this year after he refused to sell his holdings despite making losses.
Moreover, analysis has shown that 70% of dogecoin holders are still sitting on profits. This shows that while the coin is failing to gain to new highs, some traders are still holding hope that prices will change again and that new highs will be created. It also shows that short-term traders are very few, which could be a bullish sign for dogecoin.
Dogecoin has also been working on improving its network through the Dogecoin Foundation. This foundation includes both Elon Musk and Vitalik Buterin, Ethereum’s founder. This is also another area that Dogecoin remains superior to Shiba Inu, making it a hard opponent to beat.