Community Meme Coins - Shiba's Massive Breakout!

Community meme coins are peer-to-peer cryptocurrencies that are powered by the passion of their niche community. Doge, Shiba Inu, and Floki are some coins that are designed as "meme" coins which is a new type of utility for no-utility tokens.

Shiba INU was created and supported by a group of people when DOGE coin was hot and testing new ATH levels with the pump of Elon Musk. Compared to Doge, it is a young project with a crazy circulating supply. However, this coin has been in the Top 20 for several weeks.

Investopedia

While the crypto market is moving sideways, Shiba had a massive breakout that made it reach up to $10B market cap!

Question: Why Did Shiba INU Pump Hard?

There are several theories put forward in Crypto Twitter but let's discuss the most likely ones.

First reason is based on Technical Analysis. According to the chart, there is an Adam & Eve Formation in the daily chart.

In the daily chart, people think there is a TA formation. However, I'm not actually sure about the solid formation of it due to the sideway movement of the price for some more times. Yet:

The price was already above MA25 & MA50 since 0,xx950-1000.

So, it was the first option!

Burn, Burn, Burn, Burn 🔥

The coin was meant to burn!

410,377,131,661,832
Total burnt from initial supply
999,991,217,008,178
Max Total Supply

Source

Nearly half of the total supply has been burned so far. In that case, it is also deflationary when these coin-burn events are regular.

Binance Card Supports SHIB

Interesting to see that community meme tokens are used for daily expenditures. I think the use of APE coin was a booster for the trend of community tokens get new usecase.

It's been 10 days since it was announced. Those who spent their SHIB cannot be happy after this pump 😅 When I read Cointelegraph's news, it was the only possible idea that came to my mind.

Updates on Chain

On the network, the stakeholders approved a project that will make De-Fi experience on SHIB more adaptable to Crypto 2022.

the highly anticipated BONE Farms proposal won the community vote with a majority of 97.88%. BONE is one of four tokens used for staking, yield farming, trading, and rewards in the Shiba Inu (SHIB) ecosystem, with the other three being Shiba Inu (SHIB), LEASH, and the ShibaSwap LP Token. - Analyticsinsight

Most Possible Reason - Flippening of Meme Coins

Check out Coinmarketcap to see two major meme coins competing with each other to be the most valuable community token.

As of writing, Doge is 10th cryptocurrency whereas Shiba Inu is 12th in terms of marketcap.

As you know, there is a rivalry between these meme coins and the narrative of being the most valuable meme coin may have created a FOMO for crypto people. Maybe soon but not today 😉

Why do you think SHIB skyrocketed contrary to the market conditions?

Posted Using LeoFinance ^Beta