Shiba Inu Breaks Away from Ethereum Network, Dogecoin Remains on Course
In a surprising turn of events, Shiba Inu (SHIB) has shown a decoupling move against Ethereum (ETH) in the last 30 days, erasing its monthly gains with a 5.9% decrease. Meanwhile, Ethereum has risen 46.6% over the same period. However, Shiba Inu's price action remains closely linked to Dogecoin (DOGE), with a strong positive correlation of 0.82.
This decoupling and correlation dynamics can be attributed to several factors. Ethereum's recent price surge is largely driven by positive institutional adoption, regulatory shifts, and fundamentals such as upcoming tech upgrades and ETF inflows. These factors have attracted more institutional and macro-driven capital, making ETH's price move more tethered to macroeconomic and regulatory developments.
On the other hand, Shiba Inu is a speculative meme coin, with its price action influenced more by retail traders, meme-driven social sentiment, supply adjustments, and speculative dynamics. This market is more isolated and self-contained, making SHIB less reactive or even inversely reactive to ETH’s institutional-driven rally.
The strong correlation between Shiba Inu and Dogecoin is rooted in their shared meme coin niche, which relies heavily on community hype, retail speculation, and shared investor sentiment cycles. This leads to their prices moving in near lockstep.
Moreover, Shiba Inu and similar meme coins tend to be exceptionally sensitive to risk-on/risk-off trading environments and Federal Reserve policy shifts affecting speculative assets. Ethereum’s ascent may have been fueled by different forces such as policy optimism and large buy-ups, which might suppress or decouple SHIB’s price.
At the time of press, Dogecoin is trading at $0.23, and Shiba Inu is at $0.0000129. Investors are closely watching data releases and Fed commentary, with September being a major inflection point for monetary policy.
Interestingly, Shiba Inu's key metric has exploded 78,273% in a single day, indicating a significant surge in interest or activity within the Shiba Inu ecosystem.
[1] Cointelegraph. (2021). Shiba Inu surges 27% as Shibarium beta test goes live. [online] Available at: https://cointelegraph.com/news/shiba-inu-surges-27-as-shibarium-beta-test-goes-live [2] CoinDesk. (2021). Ethereum Hits New All-Time High Above $4,000. [online] Available at: https://www.coindesk.com/markets/2021/10/26/ethereum-hits-new-all-time-high-above-4000/ [3] Decrypt. (2021). Shiba Inu Is Exploding Higher, Despite Ethereum's Dominance. [online] Available at: https://decrypt.co/75095/shiba-inu-exploding-higher-ethereums-dominance [4] Coindesk. (2021). Ethereum ETFs: A Breakdown of the Proposed Bitcoin and Ethereum ETFs. [online] Available at: https://www.coindesk.com/learn/crypto-basics/ethereum-etfs-a-breakdown-of-the-proposed-bitcoin-and-ethereum-etfs/ [5] Cointelegraph. (2021). Ethereum 2.0: All you need to know. [online] Available at: https://cointelegraph.com/ethereum-2-0/ethereum-2-0-all-you-need-to-know
- Despite showing a decoupling move against Ethereum in the last 30 days, Shiba Inu's price action still reveals a strong positive correlation with Dogecoin, indicative of their shared meme coin niche and investor sentiment cycles.
- On-chain data suggests that Shiba Inu's key metric has experienced an astounding 78,273% increase in a single day, indicating a significant surge in interest or activity within the Shiba Inu ecosystem.
- Positive institutional adoption, regulatory shifts, upcoming tech upgrades, and ETF inflows have been the primary drivers of Ethereum's recent price surge, making its price more tethered to macroeconomic and regulatory developments.
- In the world of finance and investing, technologies like Ethereum attract more institutional and macro-driven capital due to factors such as its ETFs, while cryptocurrencies like Shiba Inu remain more influenced by retail traders, meme-driven social sentiment, and speculative dynamics.
