Why Shiba Inu (SHIB) is up 36% and Dogecoin (DOGE) is up 10%

Last Updated: 15 August 2022

The beginning of the week shows a shift of money towards memecoins. The price of Shiba Inu is up 36%, and Dogecoin is up 10%.

Race between Shiba Inu and Dogecoin

Having overtaken Avalanche, Polygon (MATIC), and Polkadot, Siba Inu is now in 11th place in terms of market capitalisation. The cryptocurrency is only one place away from Dogecoin. There is still a gap of 1.3 billion euros in market cap between the two coins.

The term market cap is easy to explain: if you multiply the number of coins in circulation by the current price, you arrive at the market cap.

The price increase was imminent because last weekend, the trading volume in memecoins increased by no less than 151%. Quite simply, this indicates renewed interest in the two little dogs. The only thing missing now is a tweet from Elon Musk.

Dogecoin price goes like a rocket

Below the Dogecoin price, the coin peaked last night at 18:00 at 0.0822 euro. What a difference from a few days ago, when the price seemed to fall back towards 0.06 euro.

Library for Dogecoin

Last week Michi Lumin, a developer at the Dogecoin Foundation, unveiled the first release of libdogecoin. According to him, libdogecoin is a C library of Dogecoin building blocks that allows less technically minded users to develop Dogecoin-compatible products easily.

What is even more remarkable about libdogecoin is that it supports multiple languages, including Python, Ruby, and Node.js. This development adds to the value of the Dogecoin blockchain, in theory allowing more developers to build products to harness the potential of Dogecoin.

Major changes, additions, and updates are often accompanied by a rise in the price. For example, in November 2021, the 1.14.5 version of Dogecoin Core was released, and the share price rose significantly.

Digital scarcity of Shiba Inu

According to data from WhaleStats, Shiba Inu was among the top 10 by trading volume of the 1,000 largest ETH whales in the past 24 hours.

In addition, Shiba Inu also seems to be going for digital scarcity. According to data from the Shibburn website, more than 292 million Shiba Inu tokens have been burned in the past 24 hours, this could be a reason for Shiba Inu’s price increase. After all, if demand remains the same or even increases slightly, but inventory decreases, this often means a rising price.

Burning in crypto means that tokens are permanently removed from circulation by sending them to a dead address or a cryptowallet from which they cannot be retrieved.

Visa and Shiba Inu develop credit card

That burning also comes in handy for a yet-to-be-launched product by Shiba Inu. They have announced a new Visa credit card that will burn SHIB tokens when a payment is made via the card.

The announcement was made via the Shiba Inu Twitter account. The company posted a three-second video showing an orange Visa card with SB initials, with the slogan “Make Payments, Burn SHIB.” Further details about the card have not yet been shared.

Shiba Eternity

Yet another development for Shiba, and this completely fits the mint’s image; they released Shiba Eternity on August 2. This digital card game was worked on for 2 years and has been available to Apple users since August 12.

Author

  • Florian Feidenfelder is a technical analyst with many years trading experience in the stock exchange and crypto markets. He has broad experience in forex trading, coaching, and funds management.

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