Shiba Inu’s sprint towards the top has gathered momentum in recent days as the Dogecoin spinoff blazes past popular blockchain protocols like Polygon and Stellar to become an $11 billion crypto project.
Shiba Inu’s (SHIB) October price soar has ensured the token now rubs shoulders with the mighty in crypto as it now stands as the 20th largest digital asset, judging by market capitalization. The project’s circulating market valuation experienced a sharp spike early this week to touch the $11.08 billion mark, and now maintains figures above $10 billion, securing its position in the top-20 crypto projects by market cap.
This new feat for the Dogecoin-inspired meme cryptocurrency makes it more valuable than popular blockchain projects such as Tron (TRX), Stellar (XLM), and Polygon (MATIC).
SHIB market cap versus price. Obtained from: Messari
Shiba Inu’s growth came after Elon Musk, the Tesla CEO, Tweeted a picture of his pet Shiba Inu breed dog on Oct. 4. With a simple caption “Floki Frunkpuppy,” SHIB experienced a 40% gain in just one hour of the Tweet’s publishing.
Floki Frunkpuppy pic.twitter.com/xAr8T0Jfdf
— Elon Musk (@elonmusk) October 4, 2021
Musk’s tweets keep getting crypto speculators hot on their heels as it can be seen with Dogecoin too. Earlier in 2021, Musk was instrumental in pushing Dogecoin’s price higher than most anticipated.
Just one week after opening the fourth quarter of 2021 at $0.0000075, SHIB price surged by almost 400%. This recent surge retested the token’s five-month high of $0.00003528 on Oct. 7. Despite all this, on the same date, the token still experienced a 40%-plus price correction as some traders opted to close their spot positions for interim profits. This caused a big drop in Shiba Inu’s market cap to as low as $8.06 billion.
SHIB/USDT daily price chart. Obtained from: TradingView.com
A rebound followed this dip, to push the price up by more than 45%, and the token’s highest figures on Oct. 9 stood at $0.00003020, pushing the market cap to almost $10.73 billion.
A slight 5% drop seen on Oct. 9 hinted at the token forming a potential descending triangle pattern. This suggests that additional losses may lie ahead. Descending triangles are mostly bearish patterns that form as the price trends lower and it fluctuates between a region defined by two converging trendlines – a falling one and another that is horizontal, like the ones formed by SHIB in the chart below.
Image by Petra Göschel from Pixabay
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