What happened

The cryptocurrency Shiba Inu (SHIB -2.94%) has absolutely skyrocketed today. At the time of this writing, it was up more than 30%. Earlier in the day, this crypto saw gains as high as 70% over a 24-hour period as investors have piled into this token on heavy volume.

This continued bullish price action follows a series of tweets by Elon Musk. By sending his millions of followers photos of his dog, Musk has (inadvertently?) created a frenzy of activity among speculative dog-themed meme tokens.

The moves in Shiba Inu have outpaced the broader crypto market. However, other major cryptocurrencies are also trading higher on Thursday. Indeed, it appears investors are taking a risk-on approach to speculative assets today. This comes following reports that a deal is being finalized to push out the debt ceiling discussion.

So what

This impressive buying activity has propelled Shiba Inu to a top-20 spot in the cryptocurrency rankings by market capitalization. Its market capitalization of more than $10 billion has more than tripled over the past week alone. That's impressive.

As what's been described as a knock-off meme token, playing off the success of previous meme-investor favorite Dogecoin (DOGE -1.97%), Shiba Inu has flown under the radar somewhat of late. But this recent rally has propelled the token into the limelight for investors today.

Now what

Investors looking at speculative meme tokens certainly have momentum on their side right now. Indeed, demand is surging, as are crypto prices among the most speculative of small-cap tokens.

Given Shiba Inu's rise into a top-20 spot in the market cap rankings, investors will likely be paying more attention to it. In the near term, that could mean more bullish sentiment and continued momentum. However, as we've seen with other tokens, such as Dogecoin, when the selling starts, it can pick up speed quickly. 

Accordingly, as with any speculative asset class, investors should remain prudent with sizing positions appropriately and focusing on holding a diversified portfolio.