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08/21 10:50

Dogecoin Rally Gains Momentum as Shiba Inu Buying Pressure Builds

Dogecoin ($DOGE) and Shiba Inu ($SHIB) have surged more than 15% over the past two days, with buying pressure across both tokens picking up sharply as sentiment in broader financial markets improves.

Macro Tailwind: Treasury Moves to Ease Long-End Yields

Part of the backdrop for the risk-on move is a significant policy shift in U.S. bond markets. The U.S. Department of the Treasury announced it is increasing, by at least double, the size of its liquidity support buyback operations for longer-dated nominal coupon securities, raising the maximum from $2 billion per operation to at least $4 billion, effective September 9, 2026 through November 4, 2026. The announcement came after a week in which the 30-year Treasury yield hit a 19-year high. Yields fell in response, with the 10-year note shedding 6 basis points to 4.647% and the 30-year bond dropping 9 basis points to 5.196%. Easing long-end yields tend to improve appetite for riskier assets, including cryptocurrencies.

DOGE and SHIB: What Is Driving the Move

Dogecoin has seen stronger trading activity alongside its growing payment ecosystem. The token had already been rebuilding momentum after defending a key demand zone near $0.071 to $0.072, with a large concentration of short liquidations above the current price suggesting that a decisive move higher could push $DOGE toward $0.08.

Shiba Inu's move has been particularly sharp. The token jumped roughly 36% to $0.0000057 in late July, adding around $1 billion in market value in a single day, with daily trading volume reaching its highest turnover ranking in months. South Korean traders on Upbit, where the SHIB/KRW pair accounts for more than a tenth of global volume, appeared to be a key driver of the move.

$SHIB has since pulled back from that peak, but on-chain data continues to signal accumulation. More than 207 billion SHIB have reportedly left exchange balances in recent days, a pattern that typically reflects holders moving tokens into self-custody rather than preparing to sell. Token burns have also accelerated, with Shiba Inu burns rising 515% in a single week according to Shibburn.

Looking ahead, the project carries several near-term catalysts. The most concrete item on the calendar is a Shibarium privacy upgrade built with cryptography firm Zama, based on fully homomorphic encryption, which was originally targeted for the second quarter of 2026 and has slipped, making August a live window for delivery news. A LEASH v2 upgrade featuring a fixed supply and DAO governance also remains on the 2026 roadmap.

Sources:
U.S. Department of the Treasury: Increased Sizes of Nominal Long-End Liquidity Support Buybacks
CNBC: Treasury bond buybacks ease long-term yields, but analysts see limited relief
CoinDesk: Why is SHIB up 35%? Shiba Inu rockets higher as S. Korean traders lead mystery rally
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