Why Shiba Inu popped today

The cryptocurrency rose more than the broader sector.

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Man on his phone with a shiba inu beside him.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Over the past 24 hours, the price of the meme token Shiba Inu (CRYPTO: SHIB) has jumped roughly 27% as of 10:30 a.m. ET for no obvious reason, although the crypto market is rebounding today after what has been a brutal sell-off as of late. 

There are also a few other recent events that show how Shiba Inu continues to gain traction among the crypto and investing community.

So what

Some are touting a new milestone for Shiba Inu because the token recently reached 3.4 million followers on Twitter, which is now tied with Shiba Inu's rival Dogecoin.

Both are meme tokens and very similar, so investors may view this as Shiba Inu starting to catch up to Dogecoin. Dogecoin currently has a bigger market cap, but it's definitely within reach. 

Another interesting phenomenon is that Ethereum whales, investors that on average own $14 million in their crypto wallets, seem to be growing more and more interested in Shiba Inu, which runs on the Ethereum blockchain. Shiba Inu is now the second-largest holding among Ethereum whales.

Whales are the crypto equivalent of "smart" money. These are the investors that likely know how to invest in crypto better than the rest, so their moves are followed closely.

Now what

The rebound in the crypto sector today looks to be investors taking a break from what has been intense selling and perhaps using this as an opportunity to buy the dip.

While Shiba Inu certainly moves with the crypto market to some extent, I am not a believer in this token because it possesses no real-world use case or any kind of technical advantage over other cryptocurrencies. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Bram Berkowitz has positions in Ethereum. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Ethereum. The Motley Fool Australia owns and has recommended Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

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