• Shiba Inu, a top meme coin based on Ethereum, has shifted its focus to developing scalable and secure decentralized financial applications.
• This has resulted in increased adoption by institutional investors, including Robinhood Markets Inc. (NASDAQ: HOOD).
• Traders are closely monitoring the Federal Reserve’s interest rate statement, expected on Wednesday.
The crypto market has seen a relief rally over the weekend, pushing Bitcoin’s price close to $24,000. The trend of capital flow from large-cap tokens to smaller, meme coins has been noted, leading analysts to predict further gains in the altcoin market. The recent intervention by governments in the FTX and Alameda crisis has also added to the optimism in the early stages of 2023.
One meme coin that has been gaining traction is Shiba Inu, a top meme coin based on Ethereum. Initially, the rise in the price of Shiba Inu was driven by speculation, but the coin has since shifted its focus to developing scalable and secure decentralized financial applications. This has resulted in increased adoption by institutional investors, including Robinhood Markets Inc. (NASDAQ: HOOD).
With the entrance of institutional investors, Shiba Inu will become increasingly subject to macroeconomic factors, like Bitcoin and other leading digital assets. Traders are closely monitoring the Federal Reserve’s interest rate statement, expected on Wednesday. The US FOMC is expected to raise rates by 25 basis points, with another hike in March being likely.
The UK and European Central Bank meetings, as well as the US NFP job market data, will also be closely watched by Shiba Inu traders. The unemployment rate is expected to tick higher from 3.7% in December to 3.9% in January.
The meme coin market has seen significant growth in the past few months, but a potential market recession could be a threat to the sustainability of the rally. Investors are advised to carefully study the macroeconomic environment before making any investment decisions.