On the 28th of October, joke coin Shiba Inu (SHIB) hit a market capitalisation of above $54B. At the time, the price per coin reached an all-time high of just over $0.00008. That marked a near 2000% gain from the start of the month when the cryptocurrency’s price per coin was under $0.00001 and its market cap under $3.0B.
The surge in Shiba Inu valuation went hand in hand with a rapid rise in retail interest in the coin. According to google trends, overall search interest in the term “Shiba Inu” surged by more than 30 times between the end of September and 27th of October. Similarly, over the same time period, Lunarcrush’s Social Volume metric rose from under 20K to above 500K.
Retail interest fades
But as indicators of retail trader interest in the meme coin have faded in the subsequent weeks, SHIB’s price has gradually pulled back. According to google trends data, by the 23rd of November, overall search interest in “Shiba Inu” has dropped more than by 10 times compared to the record high on the 27th of October. Lunarcrush’s Social Volume metric also pulled back to under 70K by the 23rd of November.
Meanwhile, over the same time period, SHIB has come under pressure. The coin is now down over 50% from the late October record highs and trades just above $0.0004. That means its market cap has dropped to around $24B, according to TradingView.
This is not the first time we have seen SHIB rise and fall in tandem with a rise and fall in retail investor interest in the meme coin. Recall back to May, when SHIB jumped from under $0.000002 to near $0.000035, a more than 20 fold increase in value, in a matter of days, before then sharply dipping back under $0.00001 (where it then stayed until October). That spike in valuation also coincided with a sharp uptick in search interest, according to google trends.
What next for SHIB?
Clearly then, if SHIB is to regain its mojo and head back to record levels, the retail trading/investing community is going to have to start getting excited about it again. Here the signs are tentatively promising. On Thursday the 25th of November, Lunarcrush’s Social Volume metric lept back above 100K from close to 60K the day before. Similarly, in the last five days, their Social Engagement metric has risen from under 60K (a near-one-month low) to above 120K, a more than three-week high.
SHIB might be showing early signs of responding to this uptick in interest. The coin rose more than 20% in value on Thursday the 25th of November and is threatening a technical break above a downtrend that has suppressed the price action for the whole of November.
Should SHIB break to the north of this level and should an acceleration in the coins gains rekindle retail trader/social media excitement about the coin, SHIB could be looking at some rapid gains back towards its prior record highs.