$1.5 billion enters SHIB’s market cap in 24 hours as meme coin surges 22%
After experiencing a major price correction in 2022, interest in the Shiba Inu (SHIB) meme cryptocurrency is gaining momentum with an increase in capital inflow that has propelled the Avalanche Flip Token (AVAX) to the 12th largest digital asset by market capitalization. . The emergence of SHIB has been linked to gains in the general crypto market led by large assets such as Bitcoin (BTC) and Ethereum (ETH).
In fact, as of August 14, SHIB’s market capitalization was $8.49 billion, up $1.53 billion from $6.96 billion in the past 24 hours, according to CoinMarketCap data.
Elsewhere, the capital inflow trend is mirrored in the SHIB price, which has extended a weekly streak of positive momentum. By press time, the token was trading at $0.00000155, gaining about 22% in the 24 hours.
SHIB’s gains are in line with the general market
Notably, after the first half of 2022 faltered, SHIB showed signs of recovery that started in July with gains linked to the general market that has been trading in the green in recent weeks.
Historically, altcoins have been known to follow trends created by large-cap assets such as Bitcoin. In this streak, during the early trading hours of August 14, Bitcoin broke through the $25,000 level for the first time since mid-June, affecting the market.
Although SHIB’s earnings are partly dependent on the general market, it’s worth noting that network development has grounded the coin for gains. The token attempted to regain its highs in 2021 with network activity that was promoted to make the coin more attractive.
The developer community’s focus is on rolling out more token burns to drive its acceptance. Additionally, the release of ShibaSwap in 2021 was seen as a major driver in SHIB’s value for the coming months.
Attractiveness of meme coins among investors
Moreover, amid the market correction, meme coins, in general, appear to be losing their appeal among investors, citing a lack of significant use cases as the main reason.
Notably, Google Trends data highlighted the lack of interest showing that over the past 12 months, global search queries for the keyword “Shiba Inu” fell to the lowest point in more than a year during July.
Interestingly, despite the price collapse, the number of transactions on the network seemed unfazed. As reported by Finbold, meme coin transactions in July rebounded 34% to 211,833, a gain from the 15-month low of 157,889 recorded in June.
In addition, Shiba Inu, along with other meme cryptocurrencies, has built a solid reputation for making big profits for early adopters. This aspect prompted some investors to continue betting on the asset despite the market correction.
According to a Finbold report, between June and July, SHIB added more than 20,000 new investors with interest returning to its decentralized finance (DeFi) assets.
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