The market cap of Shiba Inu has raced past the $5.22 billion mark. The token had hit a high of $0.00001482, but later on gave up some gains.
SpaceX CEO Elon Musk tweeted a photo of the newest member in his family, a pet, Floki, the Shiba Inu puppy, sitting on a Tesla. In September, he had shared a post welcoming a new member to his family.
Floki Frunkpuppy https://t.co/xAr8T0Jfdf
— Elon Musk (@elonmusk) 1633311718000
Following Musk’s tweet, crypto fanatics went crazy over the coin as volumes of SHIB have soared over 770 per cent in the last one day.
The breed happens to be the mascot of Musk’s favourite crypto currency Dogecoin. The Tesla CEO has also been called the ‘Dogefather’ by netizens.
However, Musk is not the only reason for Shiba Inu’s instant vertical rally.
The Shiba Inu team seems to be building a project, said Ishan Arora, Partner, Tykhe Block Ventures, a crypto hedge fund.
“However, it started as a meme coin with no use case but that is being changed as the team seems to be working on certain things like a decentralized exchange,” he added.
Not only Shiba Inu, other meme tokens like Husky and Shiba Cash soared 140 per cent and 75 per cent, respectively. Other tokens like Akita Inu, Baby Doug, Doggy, Kishu Inu and Pitbull rallied between 15-35 per cent.
Musk’s favourite, Dogecoin soared 12 per cent to $0.2484 on Tuesday, regaining its spot as ninth largest cryptocurrency based on market capitalisation.
Market experts say the crypto market is still in a nascent stage. Hence, it reacts to mercurial figures like Musk.
Arora said investors should stay away from such one-time wonders until there is anything substantial behind it.
“Most people do not have the grasp of their investment thesis and merely follow some influencer and buy such meme coins, ” he said. “However, early Doge investors last year did quite well, so it is not as black and white as most want it to be.”