Shiba Inu's 40% Surge Driven by Actual Demand, Not Speculation

The Shiba Inu (SHIB) cryptocurrency recently experienced an unusual rally of 40% in a single day, pushing its market capitalization to $3.12 billion and vaulting it to the 25th largest digital asset by market cap.

The surge was driven by spot inflows, which topped $5 million on July 26, according to CoinGlass data. This is the largest single-day figure in over nine months, indicating a significant influx of actual demand for SHIB rather than just speculative trading.

Trading volume surged to $717 million, an increase of up to 1,245% from prior levels, with South Korean exchange Upbit being a major contributor. The rally came after several months of downward price action for SHIB, which may have shaken out weak hands and set the stage for this uptrend.

Analysts note that spot flows significantly outpaced derivatives activity during the move, indicating genuine accumulation rather than speculative froth. If the ratio holds or improves, it suggests a foundation to this rally. However, if derivatives volume starts to overtake spot, the foundation of this rally weakens considerably.