Why is SHIB up 35%? Shiba Inu rockets higher as S.Korean traders lead mystery rally

Shiba Inu saw a sudden 36 percent price increase on Sunday, adding approximately one billion dollars in market value within 24 hours. The token now trades near a market capitalization of 3.4 billion dollars, backed by nearly 380 million dollars in daily trading volume. This movement marks the highest turnover the asset has recorded in months.

Despite the significant market activity, no major announcements or developments from the Shibarium layer-2 network explain the jump. The broader sector of dog-themed tokens did not share in this performance, as Dogecoin saw only a 6 percent gain while other smaller tokens rose by roughly 10 percent. This indicates the buying pressure was specific to Shiba Inu rather than a wider trend.

Data points toward South Korean investors as the primary drivers of this activity. The SHIB/KRW trading pair on the Upbit exchange accounts for more than 10 percent of global volume and currently trades at a premium compared to dollar-denominated venues. South Korean retail participants have a track record of initiating intense rallies in high-volatility assets, and the recent pattern of trading fits this behavior.

Liquidations of short positions occurred throughout the rally, but these followed the price movement rather than acting as a cause. Roughly 6 million dollars in short positions were liquidated, a volume that does not account for the total price shift. Shiba Inu continues to rely on retail sentiment for valuation, remaining well below its 2021 market peak.