Shiba Inu and Terra Luna Classic are not out even as fresh meme coins like Bonk and Pepe dominate the headlines. SHIB price has surged for seven straight days and moved to its highest point since May 2022. It has soared by over 263% from its lowest point in 2023.

Animal spirits in crypto and stocks

Terra Luna Classic, on the other hand, has jumped for five straight weeks and is hovering at its highest point since December. LUNC has evolved into a meme coin following the collapse of Terra and its ecosystem in 2022 and the eventual arrest of Do Kwon.

(Click on image to enlarge)

Shiba Inu vs Terra Luna Classic

The performance of Shiba Inu and Terra Luna is a reflection of what is going on in the crypto industry as animal spirits and irrational exuberance return. A closer look at the industry shows that most cryptocurrencies have surged recently.

Bitcoin price has jumped to $62,000 and most analysts believe that it will zoom to over its all-time high of $69,000 as soon as next week. Similarly, Ethereum has jumped to over $3,400 as investors anticipate the approval of a spot ETH ETF. 

The animal spirits are not happening in the crypto industry alone. In the stock market, the key American indices like the Nasdaq 100 and S&P 500 have all closed at their highest point on record. Companies like Super Micro Computer (SMCI) and Nvidia have all soared, with the former expected to move into the S&P 500 index.

Crypto fear and greed index is rising

Shiba Inu and Terra Luna Classic prices have surged as investors focus on the fear and greed index. The crypto index has moved to the extreme greed zone of 85, signalling that investors are getting optimistic about the industry.

There are other drivers for this surge. Key cryptocurrencies like Bitcoin Cash, Bitcoin, Ethereum Classic, and Bitcoin Gold will go through their halving events in the next two months.

This halving is expected to happen at a time when Bitcoin is in a short supply as demand from ETF investors rise. The iShares Bitcoin ETF (IBIT) has become the first ETF to gain over $10 billion in assets within two months. Halving is expected to limit supply growth in these conditions.

Therefore, SHIB and LUNC are soaring not because of their internal news. They have made none. Instead, the rally is because of the ongoing crypto rally and the return of meme investors. For one, a closer look shows that they are trending in key social media platforms for traders like StockTwits and Reddit.

More By This Author: