SHIB has seen significant action in the past week which pushed its price higher.
Meme coin Shiba Inu is having a blast. It has surged more than 17% this week. Right now, it is trading at 0.00003623 USDT on Binance.
What started as a joke is becoming a hot favourite of investors, especially whales.
Is this surge luck or logic?
In the past few days, the meme coin has seen significant action.
Exchanges Pushed SHIB on Wednesday
SHIB had a rolling Wednesday as exchanges embraced it with arms wide open.
On Wednesday, an Australian crypto exchange called CoinJar listed SHIB.
CoinJar said that it was inevitable for the exchange to list the coin.
The very same day, crypto exchange Huobi announced that it has enabled margin trading for SHIB. It opened more financial instruments for the SHIB supporters.
Exchanges made a big difference to SHIB’s price.
The meme coin opened at 0.00003284 and closed at 0.00003503.
Whale Action and Exchange Support on Tuesday
Tuesday saw massive transaction volumes as Whales and an exchange weaved their magic to push SHIB’s price higher.
Whales Accumulate SHIB
On Tuesday, it was reported that a whale had bought 4 trillion SHIB, worth $136 million.
It is now the most ‘hodled’ cryptocurrency among the top 1000 ETH wallets.
The whale in discussion now has 25% of its portfolio in SHIB. ETH makes up a lowly 3.89% of the holdings.
Whale accumulation is high in SHIB as the top 100 addresses hold around 26% of the total supply, as per a WhaleStats analysis. WhaleStats claims that this analysis “excludes known exchange addresses and project wallets”.
Currently, there are more than 1,083,800 total SHIB holders.
The top 1000 ETH wallets are holding 52,507,978,883,328 SHIB ($1,747,397,709 USD), which constitutes over 7% of their portfolio excluding ETH.
Another Exchange Listed SHIB
Along with Whale action, SHIB saw itself getting listed on the NiceHash cryptocurrency exchange.
Both Whale action and exchange listing created a green candle as SHIB opened at 0.00003123 and closed at 0.00003283 on Tuesday.
Shiba Inu is not seen as a serious investment according to conservative investors’ views. The coin lacks a ‘purpose’, although it is trying to shed its meme coin image. It is exploring use cases as it now has a DEX, trying its hand in the metaverse, etc. However, as mentioned above, just 100 addresses control 26% of the supply means it can be manipulated by the Whales.
One of Economics’ fundamentals states that the price of a thing is dependent on its demand and supply. It is true with even cryptocurrencies, irrespective of their use cases or ‘purpose’. Investors put their money in anything which would provide them positive returns in course of time. It means the value of the investment increases over time. So the demand for the investment offering must be higher than the supply. Other than demand, it is recommended that money should be put into something whose price or demand cannot be manipulated easily.
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