SHIB is up 25% versus DOGE in February
SHIB is currently the 13th largest cryptocurrency with a market valuation of over $18 billion, just behind rival DOGE at over $21 billion.
Although SHIB’s price lags in terms of capitalization, SHIB’s price will outperform DOGE in 2022. In February, the SHIB/DOGE pair saw a strong rally, up over 38% month-to-date (MTD).
As a result, SHIB trades 50% above MTD compared to DOGE’s 11%, as shown in the chart below.
SHIB/USDT vs DOGE/USDT daily price history | Source: TradingView
Most of the gains in February and even 2022 on the SHIB market occurred in 2 days: 6 and 7/2. SHIB price rose 41% net on back-to-back positive updates in the Shiba Inu market, compared to a 12.5% gain for DOGE.
Welly Adoption, Coin Burn, Other Bullish Catalysts
February’s SHIB rally mainly came after several bullish catalysts, including trader acceptance, a token burn event, and the announcement of a Layer 2 blockchain solution.
On Feb. 3, Welly — a fast-food chain that sells burgers and fries — announced a partnership with Shiba Inu. Accordingly, the company decided to rebrand its stores to incorporate Shiba Inu-themed products, including NFTs featuring their dog. A member of the Shiba Inu community has tweet:
“You can now buy special SHIB brand fast food. We integrate the SHIB ecosystem, expand our global storefront and take our first bold step into “real life” products.
Welly customers can use SHIB to purchase products while participating in food chain expansion through Shiba Inu’s decentralized autonomous organization “Doggy DAO”. The day after the announcement, SHIB’s price rose 7% to $0.00002219. A fan of the project comment:
“Doggy DAO brings transparency to the SHIB Army and allows others to understand the needs and requirements of the project to meet future goals.”
On February 5, the day before the massive SHIB rally, cryptocurrency firm Bigger Entertainment announced a massive SHIB-related “coin burn” on Valentine’s Day, taking 162 million SHIBs out of circulation.
On the same day, Singapore-based blockchain solutions company Unification, which has previously worked with Amazon and Google, notification has teamed up with the creators of Shiba Inu to create a Shibarium Layer 2 solution optimized for gaming.
In contrast, the Dogecoin ecosystem shies away from hype scenarios and trades more or less in sync with broader crypto market trends. The last major update came on January 14th when billionaire businessman Elon Musk notification Electric vehicle manufacturer Tesla accepts payments in DOGE.
DOGE surged as high as $0.2148 after the Tesla news on Jan. 14, but has since fallen closer to $0.15.
SHIB’s next hype: Metaverse
Unlike DOGE, SHIB is holding on to recent gains. On Thursday, SHIB was trading just 5% below its year-to-date high of $0.00003523 while anticipating a breakout of the $0.00003331 temporary resistance.
Daily SHIB/USDT price chart | Source: TradingView
SHIB is optimistic as the project’s founders announced on Wednesday that they will be entering the burgeoning Metaverse field. Accordingly, they will allow users to buy land on virtual lots. However, they didn’t reveal when they plan to launch the untitled project.
The news also helped LEASH, a token that allows users to buy and auction properties within the Shiba Inu metaverse, surge by 45% in February. This also coincides with someone buying 3.4 trillion SHIB worth nearly $116 million in one transaction.
On August 2, a new Shiba Inu whale bought 3.4 trillion SHIB ($115.9 million).
But SHIB comes with its own risks. The skyrocketing token price surge has hardly fueled an expanded use case beyond crypto exchanges. For example, Cryptwerk, an online cryptocurrency directory, shows only 618 merchants worldwide accept payments in SHIB. More than 2,000 retailers have now integrated DOGE into their checkout page.
Volatile prices also expose SHIB to the risk of larger price declines.
Recent history shows that it has corrected by 80-90% in the last 2 down cycles. The token needs a crucial close above $0.00003331 to ensure a long-term uptrend. Conversely, a comparable pullback could see it eradicate 40% of its recent gains, with the next downside target near $0.00002091.
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