Since the market closed on Friday, the price of Shiba Inu (SHIB -0.27%) had traded 7.6% higher as of 10:15 a.m. ET today. There's no obvious reason behind the move, although the crypto sector largely moved higher this weekend due to several events.
President Trump signs stablecoin bill into law
President Donald Trump signed the Genius Act into law after the market closed on Friday. The Genius Act was one of three bills passed by the U.S. House of Representatives last week during so-called Crypto Week, and will look to create a framework for stablecoins, which are digital assets pegged to a commodity or currency. Investors likely believe that the three bills passed last week could create a regulatory environment that better positions crypto for the long term.
Image source: Getty Images.
In other crypto news, Trump Media & Technology Group announced today that it had purchased $2 billion of Bitcoin, the world's largest cryptocurrency. The crypto custodian firm BitGo also reportedly filed for an initial public offering, as momentum in the crypto sector is leading start-ups to consider going public.
Additionally, the crypto rally seems to be broadening. Much of it had been dominated by Bitcoin and a few other cryptocurrencies for most of the year. But the new crypto legislation has lit a spark under cryptocurrencies like Ethereum, which seems to be benefiting from the stablecoin legislation because some of the largest stablecoins are issued on Ethereum's network. Shiba Inu was launched on top of Ethereum's network as an ERC-20 token, although has since built a layer-2 solution to conduct off-chain transactions.
Shiba Inu often moves for no apparent reason
It's not uncommon to see Shiba Inu move with the sector, although often with more volatility. While the token has advanced since launching in 2020, particularly with its layer-2 solution Shibarium, I still view it largely as a meme token and therefore advise investors to stay away.
