Shiba Inu Bonds At 42%: Should We Invest In This Crypto Before It's Too Late?

Since the beginning, memecoins, these cryptos inspired by online popular culture, have intrigued as much as they have divided, but their ability to capture billions in record time is undeniable. Last week, Shiba Inu, one of the most popular memecoins, made a spectacular jump of 42%, adding $6 billion to its market capitalization. What explains this sudden renewed interest in memecoins, and what implications could it have on the larger crypto ecosystem?

Shiba Inu Leading the Memecoin Rally

The past week saw Shiba Inu dominate the memecoin market with a meteoric rise. Within seven days, the value of SHIB climbed 42%, bringing its market capitalization to $20 billion from $14 billion previously. Such a surge places Shiba Inu as the 14th largest cryptocurrency by market capitalization. While the increase may seem surprising, it is part of a broader trend where several memecoins, notably PEPE, FLOKI, and MOG, have also experienced double-digit gains. In just 24 hours, these cryptos all saw their values increase by over 10%, while BONK posted a 13% gain over the same period.

However, the reasons behind this surge of Shiba Inu remain unclear. Some traders speculate that the appointment of the new Japanese Prime Minister, Shigeru Ishiba, might have fueled this rise, a hypothesis supported by ironic statements like the one made by Zaheer, manager of the hedge fund Split Capital, who said: “The price of SHIB jumped 50% in two days simply because the new Japanese Prime Minister’s name is ‘ISHIBA’. Do not ask the opinion of your most ignorant friends. “

The Return of Memecoins and the Influence of Launch Platforms

Beyond Shiba Inu, the memecoin rally seems to fit into a larger market dynamic. Specialized platforms like Pump.Fun have seen a significant increase in activity, with over 50,000 active addresses daily, a figure not reached since mid-August. Transaction volumes on these platforms have also exploded, surpassing $67 million on September 26, more than double the $30 million observed a week earlier. This resurgence of activity reflects a new enthusiasm for memecoins, as many investors look to capitalize on this speculative trend.

The volatility that characterizes these assets means that highs can be as rapid as the subsequent corrections. The recent surge in several memecoins, while lucrative for some traders, highlights the risks associated with these assets whose value often relies more on popular enthusiasm than on solid fundamentals. This dynamic suggests that we might be at the beginning of a new memecoin supercycle, but these cryptos could collapse just as quickly in the absence of sustainable catalysts. So, caution!

The rise of Shiba Inu and other memecoins provides a fascinating glimpse into the forces at work in the world of cryptos, where speculation can sometimes supplant fundamentals.