Shiba Inu (SHIB) is one of the most successful ERC-20 tokens on the Ethereum (ETH) network. ETH has experienced quite a surge over the last few weeks. ETH’s price began an upward swing after the Pectra upgrade. The asset has also seen a massive adoption of its ETF products. Consistent ETF inflows and the Pectra update seem to be pushing ETH to new heights. Shiba Inu (SHIB) could begin a breakout rally from Ethereum’s (ETH) latest rise. Let’s discuss more.
Ethereum May Trigger a Massive Shiba Inu Rally
Shiba Inu (SHIB) launched its Shibarium network in 2023. While the launch gave SHIB its own network, the layer-2 network is still based on the Ethereum (ETH) network. SHIB is still an ERC-20 token at its heart. ETH’s recent breakout could lead to SHIB seeing some movement as well.
According to CoinGecko’s ETH data, Ethereum-based coins are also following ETH’s upward trajectory. SHIB has also registered gains over the last few days.
Shiba Inu (SHIB) and Ethereum (ETH) share a common history. Even after SHIB’s launch in 2020, the team sent Ethereum founder Vitalik Buterin half of the project’s entire supply. Buterin decided to burn 90% of the tokens he received and donate the rest to charity. Buterin’s actions led to a massive price spike for SHIB.
ETH’s latest rally may have also been propelled by lower-than-expected Consumer Price Index (CPI) figures. The low figures may lead the Federal Reserve to slash interest rates in its next meeting. A dip in interest rates may cause investors to take more risks. Shiba Inu (SHIB) is among the riskiest assets as it is a memecoin. We could see increased inflows into SHIB if borrowing becomes easier.
Also Read: Shiba Inu’s 156% Moonshot Triggered by Whale War at $0.000014 Resistance
However, September has historically been a bearish month for the crypto market. A rate cut and a historically bad month could cancel each other out, leading to price consolidations. Global trade disputes may also present unforeseen challenges to the crypto market. How things unfold will be clear over the coming weeks.
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