- Shiba Inu price has rallied in response to bullish catalysts like the announcement of the blockchain-based digital identity system.
- SHIB’s social dominance and trading volume climbed in the past 24 hours, supporting the bullish sentiment among the meme coin holders.
- Selling pressure on SHIB remains low on crypto exchanges despite a price rally in the meme coin.
Shiba Inu, the second-largest meme coin in the crypto ecosystem, is currently rallying in response to bullish catalysts. SHIB developers recently announced the launch of a blockchain-based identity system.
Bullish on-chain metrics are driving SHIB price higher, alongside developers' announcement.
Also read: Bitcoin halving cycles show a weakening trend, similar to Litecoin, according to experts
Shiba Inu price rallies 18% over the weekend
Shiba Inu price climbed from Saturday’s low of $0.00000865 to $0.00001028 early on Sunday. The meme coin is rallying on Binance and other crypto exchange platforms. SHIB’s price rally can be attributed to the recent announcement by Shiba Inu’s developers and the bullish on-chain metrics of the meme coin.
SHIB ecosystem developers announced the launch of a decentralized blockchain identity system for projects on Shibarium, the Layer 2 scaling solution of Shiba Inu. Following the announcement, on-chain metrics of social dominance and trade volume that signal relevance and adoption of the meme coin among market participants climbed.
 [11.42.39, 06 Aug, 2023]-638268997160711346.png)
Shiba Inu social dominance vs price
As the chart above shows, Shiba Inu’s social dominance climbed to a multi-month peak of 2.914%. At the same time, prices rose 18% on Binance, and trade volume supported the meme coin’s rally.
Shiba Inu volume and supply on exchanges vs price
The trade volume climbed to the highest since February 6, powering the meme coin’s price rally. The supply on exchanges remains low despite the spike in price. This signals selling pressure on SHIB has not increased. SHIB price is likely to continue rallying with bullish on-chain metrics in tow.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any person, group, or entity, eliminating the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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