Shiba Inu (SHIB), the second-largest meme coin, has once again attracted attention with a significant price rally, surging by 16% in the last 24 hours. This recent surge pushed SHIB closer to the $0.00001966 mark, with trading volume skyrocketing by 97% to over $1.33 billion. On September 26th, the coin saw an even more dramatic surge, with trading volume increasing by 240%, sending the price as high as $0.00001934, according to CoinMarketCap.
This rally has drawn comparisons to the remarkable growth Shiba Inu experienced during the 2021 bull run. Back then, SHIB reached its all-time high of $0.00008845, generating excitement and speculation about its future potential. Now, many investors are wondering: Will Shiba Inu coin reach $1?
FOMO Fuels the Surge
The recent SHIB rally has been primarily driven by fear of missing out (FOMO), as reported by crypto analytics platform Santiment. Over the past nine days, SHIB’s price has climbed by 43%, thanks to heightened on-chain activity. Several factors contributed to this surge, including a sharp increase in trading volume, a rise in SHIB circulation, and an uptick in whale transactions, which have reached a 10-week high.
Shiba Inu’s growing dominance on social media platforms has also played a role in fueling FOMO, as more traders rush to invest. However, despite the recent price spike, analysts at Santiment have warned of the possibility of a local top, meaning the current rally may slow down in the near term.
Shiba Inu’s Market Performance
Currently, SHIB is trading at $0.00001952 with a market cap of $11.50 billion, making it the 13th largest cryptocurrency. While this is an impressive position, SHIB still remains far below its all-time high of $0.00008845 achieved in 2021. For SHIB to reach that level again, let alone $1, it would need a massive rally and significant market momentum.
The strength of Shiba Inu is further supported by its performance in the derivatives market. Open interest in SHIB futures has surged by 65%, surpassing $60 million, indicating strong interest from traders. Additionally, recent data from Coinglass shows that liquidations for SHIB have reached $2.23 million in the last 24 hours, with $1.29 million coming from short positions. Rising funding rates also suggest a prevailing bullish sentiment among futures traders.
Will Shiba Inu Coin Reach $1?
Many investors are questioning whether Shiba Inu can replicate its explosive growth from 2021 and eventually reach $1. While there are calls for SHIB to hit this target, such a scenario would require an extraordinary surge in trading volume. The sheer number of SHIB tokens still in circulation, despite ongoing burn efforts, makes this target extremely challenging.
However, there are positive developments within the Shiba Inu ecosystem that could help its growth. The upcoming launch of the SHI stablecoin and the continued success of Shibarium, the Layer 2 network, show promise. Shibarium’s total value locked (TVL) has recently reached a new high of $3.64 million, signaling growing confidence in the project’s future.
While the dream of Shiba Inu reaching $1 remains a distant one, its ecosystem continues to evolve, providing opportunities for further growth.
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