Meme coins hit the stage in early 2021, helping kickstart the bull market after Dogecoin (DOGE) topped $ 0.01 and hit new highs while being promoted by the likes of Elon Musk and Mark. Cuban was touted.
Soon after, clones of Dogecoin and other dog-themed tokens appeared to be capitalizing on the wave of bullish momentum and Shiba Inu (SHIB) fIt was one of those projects that quickly took the wind and sailed higher.
Now that Bitcoin has hit a new all-time high again, it seems that meme tokens are ready to continue their run, and this time around, they’re not waiting for the big influencers to jump on board. In the past two weeks, SHIB has risen to new highs and amazed crypto traders are scratching their heads trying to find out what the exact cause is.
Data from Cointelegraph Markets Pro and TradingView show that From the low of $ 0.0000069 on October 1, SHIB price rose 914% to hit a new high of $ 0.00000699 on October 27. while daily trading volume increased 137% to $ 24.67 billion.
The three reasons that explain the rise in Shiba Inu price and trading volume include: its listing on multiple exchanges, the launch of Shiboshi’s own non-fungible token (NFT) line, and SHIB’s growing open interest in derivatives exchanges.
Admission to exchanges increases access to SHIB
One of the main factors that helped raise the price of SHIB over the past month was the increase in user access to the token thanks to its listing on several cryptocurrency exchanges.
Some of the new listings for SHIB and the protocol’s LEASH token include the exchange BitKan, AOFEX, StealthEx and CoinFlex. Change Now has also started a campaign “Flip-DOGE for SHIB” to celebrate their inclusion in LEASH.
The ecosystem also received a boost after it was revealed that a partnership with crypto payment provider NOWPayments made SHIB and LEASH acceptable as a form of payment. is used for donations and is available for issuing cryptocurrency salaries through the bulk payment feature.
As an additional deflationary feature 3% of the revenue that NOWPayments receives from all SHIB transactions is burned.
The NFT Shiboshi
A second reason for establishing the Shiba Inu Force was to introduce their own line of NFTs known as Shiboshi’s.
Hey @shytoshikusama is that a @ginosorbillo Pizza that #Shiboshi eats? #SHIBARMY #SORBILLO #NFT #SHIBA pic.twitter.com/32YJdl9Q28
to???? pb5_five (@ pb5_five) October 12, 2021
Hey Shytoshi Kusama, is Shiboshi eating a pizza from Gino Sorbillo?
NFTs remain one of the most popular sectors of the cryptocurrency ecosystem and are a reliable way for projects to increase engagement and support from their community.
Shiboshi launched included 10,000 individual NFTs and community members had 24 hours to purchase them using the protocol’s LEASH token.
All Shiboshi were minted and listed on the NFT OpenSea market.
Increase in open interest
A third reason for SHIB’s growing strength is the rise in open interest (OI) in futures on several exchanges, including OKEx, FTX, and Huobi.
As can be seen in the graph above, the OI for SHIB rose from $ 15.7 million on October 3rd to a record $ 178.95 million on October 27th, while the price of SHIB hit a new all-time high climbed.
According to market analyst and Cointelegraph employee Marcel Pechman “Open interest seems to follow price increases rather than real increases. “
What is interesting is that though “Sellers are usually expected to liquidate their position during the bull run,” which was not the case at this recent rally. meaning that traders have either “doubled their short position by adding more margin,” which Pechman believes is unlikely, or “These are market makers who are fully covered and don’t care about price.”
“Long positions have big profits, so it’s easier for them to keep buying spot and pushing the price up. It seems that there are no ‘real’ short sellers, only market makers. If there had been big sales, the open interest would have disappeared. ”Down. “
VORTECS data from Cointelegraph Markets Pro began to see a bullish outlook for SHIB on October 24, ahead of the recent price hike.
The VORTECSâ ?? ¢ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points, including market sentiment, trading volume, recent price movements and Twitter activity.
As can be seen in the graphic above, The VORTECS score for SHIB began rising on October 23, climbing into the dark green zone to hit a high of 89 on October 24, about seven hours before the price rose 119% over the next three days.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade move involves risk, you will need to do your own research when making a decision.