'Dogecoin Killer' Shiba Inu Leaps 15% Off Partnership News: 'Extremely Good Chart' Primed For 'Huge Run,' Says Analyst

Feb 29, 202417:54 UTC

"Dogecoin killer" Shiba Inu surged over 15% in the past 24 hours, accompanied by an 81% expansion in trading volumes amid the announcement of a Shibarium partnership.

What Happened: Shiba Inu announced the introduction of a new privacy-focused network on the Shibarium blockchain, in collaboration with open-source cryptography company Zama.

This new network leverages the power of a privacy tool known as Fully Homomorphic Encryption (FHE), with the privacy layer being fueled by the Shiba Inu ecosystem token TREAT.

The Shibarium network, launched in August 2023, is designed as a low-fee ecosystem primarily focused on financial services and gaming.

Tokens such as BONE, TREAT, LEASH and SHIB play various roles in the applications built on this blockchain.

Shiba Inu founder Shytoshi Kusama took to X to announce the “latest partnership is BIG.” He stated that encryption and privacy are crucial for the Shib ecosystem.

Why It Matters: Shibariumscan data reveals a significant uptick in new accounts on the platform, rising from nine on Feb. 27 to 33 on Feb. 28.

According to IntoTheBlock data, transactions greater than $100,000 surged to 221 as of Feb. 28, marking a 26% increase from the previous day's 175 transactions. This influx suggests substantial buying activity within the Shiba Inu community.

U Today, citing IntoTheBlock data, noted that SHIB has been rising since Feb. 24. This upward trend has propelled SHIB to a notable price range, with 86,470 addresses purchasing 415.67 trillion SHIB between $0.000013 and $0.000019, averaging out at $0.000016.

What’s Next: In his recent post titled “Which meme tokens to buy?”, cryptocurrency trader Altcoin Sherpa discussed the potential of holding long-term positions in meme tokens.

His takeaways:

Most meme tokens may never return to their previous highs.
Holding meme tokens for the long term may not be the most efficient use of capital.
Predicting which meme tokens will perform well is challenging.
Older meme tokens tend to retain attention, making it difficult for new memes to gain traction immediately upon launch.

Altcoin Sherpa concludes that both Dogecoin and Shiba Inu "look like extremely good charts."

After two years of accumulation, he expects both to have "huge runs sometime this year in 2024-2025."

He suggests that while tokens like Dogwifhat , Bonk and Pepe may be good for the short term, it's prudent to adopt a wait-and-watch approach for the longer term.

With Shiba Inu maintaining its rapid burn rates and witnessing significant whale movements in recent weeks, the addition of the new privacy layer could potentially fuel further bullish momentum.

Price Action: SHIB is trading around $0.00001326, up 37% over the past week.

Read Next: A Shiba Inu Whale Just Bought 551 Billion SHIB: Last Time They Did That, SHIB Pumped 1,100%