What is the hype around Shiba Inu token?

Recently, an unnamed major investor made an over $1 mio Shiba Inu coin purchase. This is not the first case of a keen interest shown by crypto giants towards this dog-inspired cryptocurrency. So what are the reasons for its growing popularity among major market players?

A recurring trend

Prior to the aforementioned major deal in March, a similar move occurred in February when a crypto whale purchased 48 bln Shiba Inu (SHIB) tokens equivalent to about $1 mio. A total of 63 bln SHIB tokens have been acquired by four wallets this month. According to the WhaleStats website, in early March, Shiba Inu’s popularity among whales has surged over sevenfold, with their SHIB assets value reaching $1.4 bln.

Major SHIB token purchases occurred last year as well. In late November 2021, an unnamed crypto investor acquired 25 tln SHIB tokens. At the time, the total number of holders of this “meme token” exceeded 1 mio.

A joke that evolved into a phenomenon

So what are factors behind the global acceptance of Shiba Inu? Initially launched as a joke, this cryptocurrency has gained increasing recognition from investors: tech billionaire and Tesla и SpaceX owner Elon Musk has repeatedly made tweets to support Shiba Inu; the coin rose in value a thousands times over since its debut in the market.

The increasing interest to Shiba Inu, which has occurred once again in February and March, is observed amidst the token hitting a local low of $0.0002; this has prompted investors to acquire the coin which suffered a massive drop in value.

Such trend has been observed in the cryptocurrency market in general, with digital assets initially dropping in value prior to the Federal Reserve’s announcement saying it would raise interest rates, which was followed by a tendency for a general upswing in the market amidst the geopolitical crisis and players’ understanding that the FRS will not immediately increase the said rates.

With the SHIB price increasing to $0.000025, the cryptocurrency has now hit a market cap of $12.5 bln, ranking 15th largest digital token. Shiba Inu has managed to attract interest not only from small investors but from market giants as well, which shows that the token has fairly good prospects.