Shiba Inu (SHIB) has been looking to cement its place among the most serious and most valuable cryptocurrencies for as long as we've known it. This week, it might have made significant progress on that front.
On Sunday, the price of SHIB - the self-acclaimed Dogecoin killer - soared to an all-time high of $0.000044. This marked a 500 percent rally for the popular meme coin since the start of the month.
Big Gains as Robinhood Rumors Swirl
Like many other large-cap coins, SHIB has become more valuable thanks to the current market rally. The entire crypto market has been on an impressive run, with Bitcoin and other big names setting new all-time highs. As a result, the price of SHIB has also jumped to a new high.
It is worth noting that SHIB has been one of the best-performing coins of this month. Quietly but steadily, it has marked its rise atop the rankings. According to data from CoinMarketCap, it is now the 13th most valuable cryptocurrency. That’s definitely not bad for an asset that was launched just a few months ago.
Most cryptocurrencies that make big jumps tend to have reasons for them. Bitcoin was able to break its previous high thanks to the launch of a Bitcoin futures-backed exchange-traded fund (ETF). Ether largely piggybacked off the Bitcoin rise and was able to cross the $4,000 mark for the first time in months as well.
As for SHIB, the jump appears to be from hopes of a Robinhood listing. Months back, a petition was launched to get Robinhood - the popular stock trading app - to list SHIB. The petition eventually gathered 300,000 signatures this month, showing that more people would indeed like Robinhood to give SHIB a try.
Of course, this doesn’t necessarily mean that Robinhood will actually list SHIB. Still, it was enough to get the coin’s investors worked up into a frenzy. Meme coins only need a little piece of hype to get their prices up, and SHIB was able to capitalize on this to reach a new high.
Elon Musk Spoils the Fun
Sadly, the fun wasn’t to last so long. Even though the SHIB rally was an impressive one - 50.7 percent in the past week, per data from CoinMarketCap - it eventually cooled down.
The drop came after Tesla chief executive Elon Musk tweeted that he didn’t own any SHIB tokens. Amid the price frenzy, a Twitter user named ShibaInuHodler asked Musk about the billionaire’s SHIB holding. Musk simply replied, “None.”
Musk has so far been the most consequential voice in the crypto universe. The billionaire was partly responsible for the surge in market prices that happened earlier this year. His tweets set off one frenzy after another and caused more people to invest in digital assets.
At the same time, Tesla’s decision to stop accepting Bitcoin as a payment method for payments helped usher in the market downturn that lasted for months. The company claimed that it had concerns over Bitcoin’s impact on the environment, and it decided to put payments in Bitcoin on hold for the time being.
By replying that he didn’t hold any SHIB, Musk unwittingly set off yet another slide in the SHIB price. The coin’s investors had already started to take their profits after hitting its new high, but SHIB’s price saw a further 10 percent drop within about 30 minutes of Musk’s tweet. The coin eventually settled at $0.000035, although it has since risen above the $0.000040 mark once more.
So far, the reactions to Musk’s tweet have varied. Some have encouraged the billionaire to purchase SHIB, while others have counseled caution at such a time, explaining that seeking validation from celebrities is part of what landed the market in this current downturn in the first place.
Responsible Investments Are the Best Way Forward
Musk has since gone out of his way to counsel crypto investors to be more careful about their holdings and how they pick coins. The billionaire explained that he noticed many of his workers owning Dogecoin. He believed that the asset was the “peoples’ crypto,” so he decided to purchase some of it as well.
Musk added that he only owns Bitcoin, Ether, and Dogecoin. For now, other coins will need to take the back seat.
Interestingly, even Tesla appears to be switching its tone with regard to crypto payments. The company told regulators in a recent filing that it might restart crypto transactions once more in the future as it believes that cryptocurrencies are a better store of value and means of payment.
If Tesla does resume accepting Bitcoin for payments, the company will be coming full-circle. It will be interesting to see how environmentally friendly the asset would become by the time the automaker finally decides to embrace it once more.