Shiba Inu (SHIB) is currently the 13th largest cryptocurrency with a market capitalization of around $18 billion, second only to rival cryptocurrency Dogecoin (DOGE), which has a value of around $20 billion.
But despite lagging behind, SHIB has outperformed DOGE in 2022. February saw a sharp rally in the SHIB/DOGE pair, with gains of over 38% month-to-date (MTD) in particular.
As a result, Shiba Inu gained over 50% MTD against the US Dollar against 11% Dogecoins as shown in the chart below.
SHIB/USDT daily price action against DOGE/USDT. Source: Trading View
Most of the growth in the Sheep market came in February – and indeed 2022 – on two dates: February 6 and 7. SHIB price is up 41% net, thanks to continued bullish updates in the Shiba Inu market compared to 12.5 DOGE. % Wins.
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The Shiba Inu’s rise for February came mainly after several bullish catalysts, including the acceptance of sellers, the token burning event, and the announcement of a Layer 2 blockchain solution.
On February 3, Willy’s, a fast-food chain that sells hamburgers and French fries, announced that it had entered into an agreement with Shiba Inu. At the same time, the company decided to rebrand its stores to combine Shiba Inu products, including non-interchangeable tokens with images of mascot dogs.
Welly customers will be able to purchase their products using SHIB tokens while participating in the expansion of the food chain through Shiba Inus’ decentralized independent organization “Doggy DAO”. The day after the announcement, SHIB’s price rose 7% to $0.0002219.
On February 5th, the day before the Shiba Inu Grand Rally, crypto company Bigger Entertainment announced a massive “coin burn” involving SHIB tokens on Valentine’s Day, effectively taking 162 million SHIB out of circulation.
On the same day, Singapore-based blockchain solutions company Unification, which previously worked with Amazon and Google, announced a collaboration with the creators of Shiba Inu to develop a second layer solution called gaming-optimized Shibarium.
On the other hand, the Dogecoin ecosystem has refrained from offering scenarios and has traded – more or less – in tandem with the trends of the broader crypto market. The last major update came on January 14, when billionaire entrepreneur Elon Musk announced that his electric car company, Tesla, would accept payments at DOGE.
The DOGE index rose to $0.2148 after the Tesla news on January 14, but has since fallen to nearly $0.15.
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Unlike Dogecoin, Shiba Inu maintained its recent gains. On Thursday, Shippate’s stock traded just 5% below its year high at $0.00003523, with a breakout above the temporary resistance of $0.00000331.
SHIB/USDT daily chart. Source: Trading View
SHIB maintained its bullish tone when Shiba Inu makers announced on Wednesday that they will focus on the emerging sector of the metaverse. In doing so, they will allow users to purchase plots of land with virtual land. However, they did not reveal when they plan to launch the yet-to-be-named project.
The news also helped LEASH, a token that will allow users to buy and sell land in the Shiba Inu meta world, up 45% on February 9. It also coincided with a person buying 3.4 trillion SHIB worth nearly $116 million in a single sale.
But SHIB has its own set of risks. First, the token boom has done little to increase its use outside of cryptocurrency exchanges. For example, Cryptwerk, an online directory of cryptocurrencies, shows that only 618 merchants worldwide accept payments at SHIB. In contrast, more than 2,000 merchants have integrated DOGE into their checkout page.
Also, the high price volatility puts Shiba Inu at risk of massive withdrawals.
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SHIB’s recent history shows that it has corrected 80-90% during the previous two bearish cycles. With the coin now very close to $0.00000331 to perpetuate its long-term bullish bias, a pullback of the same stock could erase 40% of its recent gains with the next downside target approaching $0.00002091.