Unexpected Rally in Shiba Inu: Adds $1 Billion in 24 Hours Despite No New Developments
Shiba Inu (SHIB) gained 36 percent in a single day, adding $1 billion to its market capitalization without any ecosystem developments, decoupling from its competitors under the influence of South Korean investors.
Popular meme coin Shiba Inu (SHIB) staged an unexpected rally during a quiet period in the cryptocurrency market. Rising to approximately $0.0000057 on Sunday, the asset managed to increase its market cap by around $1 billion in just 24 hours. This sudden surge occurred despite no announcements or technical developments from the project’s Layer-2 network, Shibarium.
Reaching a daily trading volume of $380 million, SHIB saw its highest trading traffic in recent months. Interestingly, this surge was not part of a general meme coin wave. While Dogecoin (DOGE) gained only 6 percent during the same period, SHIB’s sharp upward decoupling drew significant attention. This move, which pleased investors, pushed the asset’s market cap to the $3.4 billion mark.
South Korean Investors and the Short Squeeze Effect
Data shows that South Korean investors are behind this mysterious rally. The SHIB/KRW pair on Upbit, the country’s largest exchange, accounted for more than one-tenth of the global market with a volume of $62 million. In fact, prices on this exchange traded at a higher premium compared to giant platforms like Binance. This movement, which started Saturday night with a second leg on Sunday morning, also left those betting on a price drop in a difficult position.
As the price rose, the positions of approximately 2,300 investors were liquidated. A total of $6 million in liquidations (forced closing of positions) occurred, with $5 million of that consisting of short positions—those expecting the price to fall. Although this short squeeze movement supported the price, the primary driver of the rally was the intense interest from retail investors. While SHIB is still far from its 2021 peak, it continues to maintain its presence in the market through such community-driven movements.