The Shiba Inu token (SHIB) experienced a significant surge in value shortly after being listed on Binance, one of the world’s largest cryptocurrency exchanges. Within just ten minutes of trading going live, SHIB’s price increased by over 100%. Coinciding with this rapid price movement, Binance temporarily suspended all withdrawals on its platform, citing extreme network congestion.
Approximately half an hour later, the exchange announced that withdrawals had been fully restored. An official statement from Binance mentioned that the suspension was due to traffic overload and that the technical team had promptly resolved the issue.
Data from CoinMarketCap showed that SHIB recorded a 24-hour gain exceeding 70%, with an impressive seven-day rally surging over 1,400%.
Understanding SHIB and Its Recent Popularity
SHIB is a relatively new cryptocurrency that has quickly gained traction among traders and investors. It is an Ethereum-based token branded as “DOGE Killer” in its whitepaper, aiming to challenge the popularity of Dogecoin.
The token’s recent rise in visibility can be partly attributed to social media influence and broader interest in meme-inspired cryptocurrencies. Public figures, including Elon Musk, have contributed to the volatility and attention around such digital assets.
How Exchanges Influence Cryptocurrency Prices
Listing on a major exchange like Binance often brings increased liquidity and accessibility, which can lead to rapid price changes. Shortly after the announcement, Binance introduced a new SHIB perpetual futures contract, allowing traders to speculate on its future price.
The exchange also included SHIB in its Innovation Zone, which is dedicated to newer and more volatile trading assets. This provided an alternative way for users to gain exposure to SHIB beyond spot trading.
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Market Predictions and Analyst Outlook
Despite the excitement, analysts have mixed views regarding SHIB’s long-term sustainability. Some platforms are cautious, citing high volatility and speculative trading as major concerns.
WalletInvestor, for example, considers SHIB a poor long-term investment, projecting a decline in its value over the next year. Similarly, Gov Capital forecasts a substantial decrease in price within the same period.
On the other hand, DigitalCoinPrice offers a more optimistic short-term outlook, anticipating modest growth by the end of the year.
It’s important for potential investors to approach such assets with caution and conduct thorough research before participating in the market.
Frequently Asked Questions
What is SHIB?
SHIB is an Ethereum-based cryptocurrency created as an alternative to Dogecoin. It markets itself as a community-driven token with a decentralized ecosystem.
Why did Binance pause withdrawals?
Binance temporarily suspended withdrawals due to a sudden surge in traffic and transaction volume, which overloaded the system. The issue was resolved within approximately 30 minutes.
Is SHIB a good long-term investment?
Opinions are divided. Some analysts are skeptical due to its volatility, while others see short-term opportunities. Always do your own research and consider your risk tolerance.
What are perpetual futures contracts?
Perpetual futures are derivative products that allow traders to speculate on an asset's future price without an expiration date. They are popular in crypto markets but come with higher risk.
Can SHIB replace Dogecoin?
While SHIB is branded as a "DOGE Killer," it remains uncertain whether it can surpass Dogecoin in market acceptance or longevity. Both tokens are highly speculative.
Where can I learn more about trading volatile assets?
It’s recommended to use educational resources and platforms that offer real-time data and risk management tools. 👉 Get advanced market insights