Shiba Inu ($SHIB) market cap increases by 22% in 24 hours. Is Crypto back?

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Interest in the memecoin Shiba Inu (SHIB) is increasing again, after it experienced a significant price correction in 2022. The cryptocurrency is gaining momentum, recording increased capital inflow that has allowed the token to flip Avalanche (AVAX) to now rank as the 12th largest digital asset by market cap. The resurgence of SHIB has correlated with the general crypto market gains led by large-cap assets like Bitcoin (BTC) and Ethereum (ETH).

As of August 14th, SHIB’s market capitalization stood at $8.49 billion, gaining by $1.53 billion from $6.96 billion in the last 24 hours, according to CoinMarketCap data.

SHIB one-day market cap chart. Source: CoinMarketCap

Elsewhere, the capital inflow trend is reflected in the price of SHIB, which has extended a weekly streak of positive momentum. By press time, the token was trading at $0.0000155, gaining by about 22% in the 24 hours.

SHIB one-day price chart. Source: CoinMarketCap

SHIB gains align with the general market

Notably, after faltering in the first half of 2022, SHIB began to show signs of recovery in July, with the gains correlating with the overall market which has been trading in the green zone in recent weeks.

Historically, altcoins are known to follow trends established by large-cap assets like Bitcoin. During the early trading hours of August 14th, Bitcoin surpassed the $25,000 level for the first time since mid-June, influencing the market.

Although SHIB gains partly rely on the general market, it is worth noting that network development has also set up the coin for gains. The token has attempted to regain its highs of 2021 with network activity touted to make the coin more appealing.

The focus of the developer community has seen the rolling out of more token burns to drive its acceptance. Additionally, the release of ShibaSwap in 2021 was viewed as a key driver in SHIB value for the coming months.

Meme coins’ appeal among investors

Furthermore, amid the market correction, meme coins, in general, have lost appeal among investors, with a lack of significant use cases cited as a major reason.

Notably, the lack of interest was highlighted by Google Trends data that showed that over the last 12 months, global search queries for the keyword ‘Shiba Inu’ dropped to the lowest point in over a year during July.

Interestingly, despite the price crash, the number of transactions on the network appeared unfazed. As reported by Finbold, the meme coin transactions in July recovered by 34% to 211,833, gaining from the 15-month low value of 157,889 recorded in June.

Additionally, Shiba Inu, alongside other meme cryptocurrencies, built a reputation of significant profits for early investors. This aspect has driven some investors to continue betting on the asset despite the market correction.

As per another Finbold report, between June and July, SHIB added over 20,000 new investors as interest returned to the decentralized finance (DeFi) asset.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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