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No longer just a wildly speculative meme coin, Shiba Inu (SHIB-USD) now commands serious respect among cryptocurrency speculators. As of this writing, the SHIB crypto is now ranked 10th among cryptos in terms of market capitalization. This news arrives after the benchmark digital asset Bitcoin (BTC-USD) recently set a new all-time high, thereby lifting all boats in the sector.
According to The Wall Street Journal, Bitcoin “briefly crossed” the $69,000 mark today. This performance has beat its previous high of $68,990 set on Nov. 10, 2021. With the U.S. Securities and Exchange Commission (SEC) recently approving spot Bitcoin exchange-traded funds (ETFs), the watershed moment has undergirded some unprecedented demand for digital assets.
Naturally, then, the rise of BTC is sparking momentum in other virtual currencies and altcoins. However, the biggest news may be the SHIB crypto. Over the last seven days, Shiba Inu has soared in market value. That has been good enough to launch the token to the 10th slot among the world’s most valuable cryptos.
Currently, SHIB has a market cap of about $17 billion, holding a considerable lead over Avalanche (AVAX-USD), which is ranked in 11th place at $14.4 billion as of this writing.
SHIB Crypto Is Compelling, But Significant Risks Stand in the Way
Looking ahead, SHIB crypto bulls are likely targeting the next major milestone: Securing the ninth spot among cryptos. Right now, that spot belongs to another fellow meme token — the one that started it all, Dogecoin (DOGE-USD). The value of Dogecoin currently clocks in at $20.6 billion.
For SHIB crypto speculators, the math may appear compelling. Over the past seven days, DOGE has managed to return around 65% of value for investors. That’s impressive no matter how you look at it. However, Shiba Inu gained more than 150% during the same period. With this accelerative firepower, it may not take too long for an overtake to materialize.
Still, significant risks also stand in the way. After Bitcoin reached its fresh summit today, the crypto incurred a significant correction. As of this writing, BTC is down about 7% for the past 24 hours. While the SHIB crypto was initially holding on well, it too has succumbed to the pressure, down about 15% over the same period.
All eyes are likely focused on the upcoming halving event for Bitcoin, which is set to occur sometime in April. On paper, this event should slow the supply of the virtual currency, which should in turn accelerate demand. Nevertheless, investors must also be mindful of the “buy the rumor, sell the news” effect.
Why It Matters
After securing a new record, the focus will also turn to whether crypto investors have anything left in the tank. Here, the extremely small per-unit price of the SHIB crypto could benefit it via an intra-sector rotation. Still, that miniscule price also means that Shiba Inu is vulnerable to extreme bouts of volatility.
On the date of publication, Josh Enomoto did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the biedexmarkets.com.com Publishing Guidelines.
