Ethereum whales buy US$3M worth of Shiba Inu

Ethereum whales buy US$3M worth of Shiba Inu

 

The Shiba Inu (SHIB) price has been fraught quite aggressively for the past several months. Shiba Inu much like the rest of the Cryptocurrencies and the Crypto Market in general have been heavily plunging due to the various macro factors, increased regulatory tightening, and the aggressive moves by the U.S. Federal Reserve to reduce the impact of inflation by squeezing liquidity out of the economy. Shiba Inu is a meme coin and is highly volatile in nature. These meme coins have a tendency to give remarkable returns during bull runs while also generating extra losses during bear markets. Today, crypto experts are forecasting that the SHIB price is about to reach a strong support area since more and more Ethereum (ETH) whales are joining the Shiba Inu cult. Lately, a large number of ETH holders are actively buying, holding, and trading the popular meme coin. Now, Shiba Inu has appeared as one of the largest non-Ethereum holdings among cryptocurrency whales.

 

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The self-declared ‘Dogecoin killer’ is the largest coin by dollar value that has placed itself in the wallets of the top 100 crypto whales on the network. Reportedly, a popular Cryptocurrency whale known as ‘Gimli’ hoarded up 386 billion Shiba Inu coins and added them to the investment portfolios earlier this week. Gimli has steadily continued to add new Shiba Inu tokens, even during the cryptocurrency winter. This specifies that even though the meme coin is one of the most volatile and might not make up for a long-term investment asset, its growth potential surely has caught the eye of popular and some of the largest ETH whales in the market.

 

 

Shiba Inu is the Most Popular token Among Ethereum Whales

 

For many years, cryptocurrency analysts have been saying that Shiba Inu is quite weaker than its competitive Digital Currency tokens since it did not possess any real-world use cases. But SHIB developers have been working hard to ensure that these allegations are abridged. Its recent launch of the SHIB Burn Visa card, its metaverse domain, and also the release of the recent Shiba Inu cryptocurrency trading platform has enabled the meme coin to establish itself among the top digital currencies in the market. But these initiatives are not the only reasons why cryptocurrency whales are being attracted to the Shiba Inu.

 

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According to multiple reports, ETH whales possess about US$45 trillion worth of Shiba Inu tokens on their portfolios, which equals to about 20% of their total portfolios. But also quite notable is the fact that Shiba Inu token’s share is almost equal to the share of USDT and USDC in their portfolios. Furthermore, it is quite critical to note that ETH whales are stockpiling more and more Shiba Inu tokens after the recent Cryptocurrency Market slump, and with the SHIB army continuing to steadily burn the tokens, it is only a matter of time that Shiba Inu will see a massive price rally as its investors will be able to generate massive amounts of returns on investment.

 

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When will the Shiba Inu rally commence?

 

Since the beginning of 2022, the cryptocurrency community has been wondering when the price of Shiba Inu will reach US$1. There have been various price prediction reports, that forecast that it will reach US$1 by the end of 2022. But as volatility and macroeconomic uncertainties continue in the crypto market, this forecast seems to be quite far-fetched. Industry experts believe that to induce a bullish price rally, Shiba Inu might have to reduce its current supply by more than 100%. Hence, Shiba Inu is burn mechanism might work its way up to allow the token to reach the long-awaited price threshold.

 

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Meanwhile, several other estimates depict that Shiba Inu might also lose its value by over 95% before the end of 2022. Currently, one of the primary challenges that SHIB faces is that the Cryptocurrency still lacks a competitive edge and differentiation in a diverse market. Shiba Inu is an ERC-20 token, created on the ETH, Blockchain, but the cryptocurrency does not offer any other significant use-cases that may attract other investors. Shiba Inu is just a payment coin, without any real-world utilities. So, the developers have to introduce other use cases to ensure that the SHIB token experiences a price rally, the actions of the cryptocurrency whales will do little to help build a robust future for Shiba Inu.