Since mid-March, the market capitalization of the Shiba Inu token has surpassed that of Tron (TRX), which is the token powering the Tron blockchain protocol.
The former, on the other hand, is the second-largest meme coin in the market and powers the Shiba Inu web3 ecosystem.
The reason
This decline in the market capitalization of the TRX token is partially due to the news circulating last month about the US Securities and Exchange Commission (SEC) targeting Justin Sun.
He is the founder of the Tron blockchain and it was reported that the securities regulator was planning to go after him for alleged securities fraud.
The market capitalization of the SHIB token stood at $6.5 billion, as compared to the $6 billion of the TRON token.
According to CoinGecko, this valuation makes the two tokens the 14th and 15th largest cryptocurrencies globally in terms of market capitalization.
At the time of writing, the SHIB token had been changing hands at a value of $0.000011. It continues to trade between the range of $0.000010 and $0.0000117 since early March.
Market conditions
In recent weeks, the Shiba Inu token has experienced subdued trading conditions and this comes at a time when major cryptocurrencies, such as Bitcoin, have seen a consolidation.
In mid-March, Bitcoin had recorded a rapid rise in its price, but the largest currency in the world by market cap has been undulating for the last three weeks on either side of the $28,000 mark.
However, this week has some major macro events scheduled in the United States, which could cause a shift in Bitcoin and the wider crypto market.
On Wednesday, the US Consumer Price Index (CPI) data is scheduled to release and the Producer Price Index (PPI) is also scheduled for release a day later.
On Friday, the US Retail Sales and Consumer Sentiment data is due. On Wednesday, the minutes of the last meeting of the US Federal Reserve will also be shared.
Plus, a number of policymakers of the US central bank are also scheduled to speak throughout the week.
Price expectations
The possibility of another interest rate hike of 25 basis points by the Fed was strengthened last Friday, as the jobs data turned out to be solid, but this could change in light of the data this week.
If the Fed events and the data shows that inflation is dropping and a recession is coming, this could weigh on the dollar and support crypto tokens like Shiba Inu and growth stocks.
Even though there is not a guarantee, there are certainly catalysts that could see a higher movement in terms of crypto prices.
Shiba Inu bulls are hopeful that this could result in an upside breakout for the meme token from the ascending triangle that has formed in the last few weeks.