Another big purchase (50 billion Shiba Inu tokensAfter ‘i), that critical question came up again: why are the big cryptocurrency market players constantly buying millions of dollars’ worth of SHIB tokens? We have compiled potential causes of this problem for you.
Whales trying to take control of token
According to WhaleStats data, shiba inuremains the largest position in USD terms among Ethereum whales, with major wallets holding around $1.3 billion worth of SHIB. The whales’ desire to control the circulation of the asset in the market explains such a strong dominance.
Generally, the high concentration of supply on the hands of whales is considered “bullish” by crypto enthusiasts as they prefer to accumulate assets rather than dispose of them. With a high percentage of supply held by retail traders and investors, the market usually sees more selling pressure than otherwise.
Shiba Inu price drop
While whales control the circulating supply, they would not actively buy an asset at a discount as big as we saw with the Shiba Inu. SHIB has lost more than 70% of its value since its ATH, making it an attractive Risk/Reward situation for investors in the event of another rally.
Shiba Inu has “meme coin potential”
The term meme potential was introduced after Dogecoin’s massive rise in 2021, which usually means that the asset has strong rally potential with no underlying reason behind it.
“Meme coin rallies” are often sponsored by retail traders and only last a few weeks in the best-case scenario. While this type of rally may give investors and traders a hundred percent gain, it tends to disappear quickly and coins often lose 90% of their value.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.