The cryptocurrency that stole the show this week was shiba inu (SHIB). Dogecoin’s direct rival (DOGE) rose hundreds of percent in value. From new dates shows that this increase was partly driven by new investors.
The world of meme cryptocurrency is one that probably not many people will understand. Cryptocurrencies like dogecoin are based on existing memes, in this case the Doge meme. Where Ethereum (ETH) supports smart contracts, the value of these altcoins is mainly based on sentiment and nostalgia.
There is a real competition among the cryptocurrencies based on the Doge meme. Dogecoin was the first cryptocurrency based on this meme and soared early this year, partly thanks to help from Tesla CEO Elon Musk. He himself was also the likely instigator of the rally in recent days.
He has bought himself a Shiba Inu dog, the dog that is central to the Doge meme and is the mascot for DOGE. However, Dogecoin competitors also use the dog’s likeness, including shiba inu (SHIB). This altcoin is actually a direct clone of DOGE, which soared this week after a tweet from Musk.
Floki Frunk puppy pic.twitter.com/xAr8T0Jfdf
— Elon Musk (@elonmusk) October 4, 2021
From the time this tweet was posted and the peak of October 7, SHIB has increased in value by nearly 300%. In the same time, the number of new SHIB owners has increased significantly. Data shows that there are about 31,000 new owners. This suggests that the recent price rally has motivated more new investors to enter, further accelerating the rise.
Meanwhile, the value of SHIB has also fallen again. Holders who bought at the top are now more than 20% in the min. That is unfortunately the other side of these altcoins, they are often very volatile. A small warning is therefore warranted.