After a significant price correction in 2022, interest in meme cryptocurrency Shiba Inu (SHIB) is gaining momentum and registering increased capital inflows that prompted the token to flip Avalanche (AVAX) to rank as the 12th largest digital asset according to Market capitalization. SHIB’s resurgence has been correlated with overall gains in the crypto market, led by large-cap assets such as Bitcoin (BTC) and Ethereum (ETH).
Indeed, as of August 14, SHIB’s market cap was $8.49 billion, up $1.53 billion from $6.96 billion in the past 24 hours, according to CoinMarketCap data.
Elsewhere, the trend of capital inflows is reflected in the price of SHIB, which has continued a weekly streak of positive momentum. By the time it was printed, the token was trading at $0.0000155, a gain of about 22% in the 24 hours.
SHIB gains line up with general market
Notably, after a faltering first half of 2022, SHIB showed signs of recovery beginning in July, with gains correlating with the general market trading in the green zone in recent weeks.
Historically, altcoins have been known to follow trends set by large-cap assets such as Bitcoin. Along this line, Bitcoin crossed the $25,000 level during the early trading hours of August 14 for the first time since mid-June, impacting the market.
While SHIB profits depend in part on the general market, it is worth noting that network development has set up the currency for profit. The token has attempted to regain its 2021 highs with network activity touted to make the coin more attractive.
The developer community’s focus has been on rolling out more token burns to drive adoption. In addition, the release of ShibaSwap in 2021 was seen as an important factor in the SHIB value for the coming months.
The Appeal of Meme Coins Among Investors
Additionally, amid the market correction, meme coins appear to be generally losing their appeal with investors, citing a lack of significant use cases as a major reason.
The lack of interest was particularly highlighted by Google Trends data that showed global searches for the keyword “Shiba Inu” in the past 12 months fell to its lowest point in more than a year in July.
Interestingly, despite the price crash, the number of transactions on the network seemed unaffected. As reported by Finbold, meme coin trades recovered 34% in July to 211,833, which beat the 15-month low of 157,889 recorded in June.
Moreover, along with other meme cryptocurrencies, Shiba Inu has built a reputation of significant profits for early investors. This aspect has prompted some investors to continue betting on the asset despite the market correction.
According to a Finbold report, SHIB added more than 20,000 new investors between June and July as interest returned to decentralized financial assets (DeFi).
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