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Shiba Inu appears to be in a decoupling move against Ethereum (ETH), the second-largest cryptocurrency by market capitalization.
According to on-chain data, Shiba Inu has marked a negative correlation coefficient with Ethereum in the last 30 days.
Data from IntoTheBlock reveals Shiba Inu as having a -0.03 correlation with Ethereum. This correlation coefficient figure suggests two things: a value near 0 indicates no correlation. Second, it signals negative correlation, meaning that the prices of Shiba Inu and Ethereum moved in opposite directions in the last 30 days.
Ethereum has risen in recent weeks, with the price of the second-largest cryptocurrency increasing 46.6% over the past month, marking a strong performance.
With the recent drop in the market, Shiba Inu has erased monthly gains. According to CoinGecko data, the dog coin is down 5.9% over the last 30 days.
The shift could be tied to changes in market sentiment, with favorable regulatory shifts and massive buy-ups of Ethereum on Wall Street driving up the ETH price, while meme coin trading cycles seem more self-contained.
Shiba Inu and Dogecoin correlation on track
While Shiba Inu seems to be breaking away from Ethereum, its price remains correlated with Dogecoin (DOGE). IntoTheBlock data shows a strong positive correlation of 0.82 between the two coins, indicating that SHIB and DOGE are moving in near lockstep.
Around press time, Dogecoin and Shiba Inu were trading down at $0.23 and $0.0000129, respectively.
Crypto markets saw over $481 million in leveraged positions wiped out in the past 24 hours, according to CoinGlass data, as investors took profits and considered delayed Federal Reserve rate-cut expectations.
Traders are now eagerly watching data releases and Fed commentary closely, with September shaping up as the next major inflection point for monetary policy.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team