Shiba Inu (SHIB), the popular meme coin, has defied expectations in May 2024. Despite lingering market uncertainties, SHIB managed to notch a growth of 13.2%, according to Cryptorank data. This positive performance marks a significant departure from May 2023’s dismal performance, where the token suffered a 15.4% slump.
However, the real challenge for SHIB lies ahead. Historically, June has been an unkind month for the cryptocurrency. Since its inception, SHIB has never closed a June period in positive territory. June 2021 saw a 4.75% decline, followed by a steeper 12% plunge in June 2022. The trend continued the trend with an 11.5% loss for SHIB.
Several factors suggest that June 2024 could be a turning point for SHIB. The most notable change in the market environment is the introduction of spot Bitcoin ETF products on US stock exchanges.
While this doesn’t directly impact SHIB, it bolsters overall institutional investment in the crypto space, potentially driving Bitcoin prices upwards. Given the strong correlation between SHIB and Bitcoin, a Bitcoin rally could massively impact Shiba Inu (SHIB) in terms of price.
Also, the token has flirted with a position within the top 10 cryptocurrencies by market capitalization, briefly displacing Cardano and Avalanche. This ability to maintain steady growth suggests that SHIB has the potential to erase past losses.
Beyond external market forces, internal developments within the Shiba Inu ecosystem also provide reasons for optimism. The SHIB team has highlighted a “major evolution” within the Shiba Inu ecosystem that could contribute to a record-breaking June. This likely refers to the full operationalization of Shibarium, a layer-2 blockchain solution designed to improve scalability and transaction speeds for SHIB and related projects.
Shibarium’s growing total value locked (TVL) indicates increasing user adoption and investment within the Shiba Inu ecosystem. The presence of functional decentralized applications (dApps) on Shibarium further incentivizes SHIB usage, potentially leading to a rise in demand for the token.
While predicting future market movements remains a challenge, SHIB’s May surge and the evolving Shiba Inu ecosystem offer compelling reasons to believe the token could break its historic June slump and achieve positive monthly growth for the first time.
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