Give the dog its due: Shiba Inu (SHIB 3.35%) has had some good news in recent days. And some of the credit goes to deep-pocketed Ethereum (ETH 0.25%) whales. These whales hold large amounts of Ether tokens but scoop up other cryptocurrencies at times as well.
Last week, Shiba Inu even regained its status as the largest holding other than Ether for the biggest Ethereum whales. Although USDCoin (USDC 0.00%) later jumped back into the top spot, this was a notable achievement.So why are Ethereum whales seemingly buying Shiba Inu hand over fist?
Incremental progress
First, it's appropriate to put the current buying levels into perspective. The expression "hand over fist" originally referred to making progress in climbing a rope. That's probably the best way to view the current scenario: incremental progress.
Shiba Inu hasn't returned to its high-flying ways seen throughout much of 2021. But a gain of more than 30% over the past week, driven by increased buying pressure, is certainly a positive for the beaten-down meme coin.
Although Ethereum whales now seem to view USDCoin as their favorite non-Ether cryptocurrency, Shiba Inu comes in as a close second. According to WhaleStats, USDCoin makes up 16.7% of the top Ethereum whales' holdings, excluding ETH, while Shiba Inu makes up nearly 14.4%. The No. 3 token -- FTX Token (FTT) -- lags well behind, comprising around 10.4% of total holdings.
Reasons behind the whales' bullish behavior
It's not hard to figure out why Ethereum whales have bought cryptocurrencies in recent days. The performance of cryptocurrencies has loosely correlated with stocks so far this year, especially growth stocks. After a string of down weeks, the stock market rebounded somewhat last week.
But why were the whales specifically buying Shiba Inu? We can make some educated guesses.
The increasing burning of SHIB tokens likely ranks as one factor behind Ethereum whales' bullish behavior. Although the number of coins in circulation hasn't been dramatically reduced yet, an aggressive burning strategy could boost Shiba Inu's price over the long term.
There are also some potential catalysts for Shiba Inu on the way. Arguably the most important of these over the near term is that the Shibarium layer-2 solution is now expected to launch in the third quarter of 2022.
Also, the Shiba Inu metaverse is expected to launch later this year. Sales of virtual land in the metaverse are already underway.
In addition to these factors, don't discount the fact that Ethereum whales have had an attraction to Shiba Inu for a while. The meme coin has ranked among the top non-Ether holdings for Ethereum whales for months.
Still not out of the doghouse
Unfortunately for Shiba Inu holders, there's no guarantee that the recent rebound will continue. The macroeconomic concerns that have caused the stock market and cryptocurrencies to sink haven't gone away.
There are plenty of other cryptocurrencies that offer more real-world utility than Shiba Inu does. The introduction of Shibarium and the Shiba Inu metaverse could help, but they won't necessarily be game changers in comparison to rival tokens.
Some maintain that the meme coin remains a cryptocurrency to avoid. You don't have to agree with that position to know that, despite its improvement of late, Shiba Inu still isn't out of the doghouse.
Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ethereum. The Motley Fool has a disclosure policy.
FAQs
Despite a bearish phase, the latest whale activity suggests a strategic move to buy SHIB at lower prices, anticipating a future surge. This tactic is not uncommon among large holders, or "whales," who can influence market trends with their sizable transactions.
Is Shiba Inu backed by Ethereum? ›
Shiba Inu is built on the Ethereum (ETH -0.91%) blockchain, so it can run smart contracts. Through smart contracts, Shiba Inu can work with decentralized applications. Dogecoin doesn't have this capability, making it much more limited in terms of what it can do.
Why is Shiba Inu token so popular? ›
Key Takeaways. Origin and Concept: Shiba Inu (SHIB) is a meme-based cryptocurrency launched in August 2020 by the anonymous "Ryoshi." It gained popularity due to its playful theme and community focus.
Why is Shiba coin soaring? ›
Shiba Inu's value has been soaring this year as investors have been bullish on crypto as a whole. The meme coin has a higher whale concentration compared to Bitcoin, which likely contributes to its wild swings and volatility.
How many whales own SHIB? ›
As of 2022, Shiba Inu has over 1.2 million holders. However, the largest Shiba wallets, or “whale wallets,” are just ten.
Which coin are whales buying? ›
These whales are often associated with major cryptocurrencies such as Bitcoin and Ethereum, though they may also hold significant amounts of various altcoins.
Which crypto will boom in 2024? ›
Top 10 Cryptos in 2024
| Coin | Market Capitalization | Current Price |
|---|
| Bitcoin (BTC) | $1.32 trillion | $67,217 |
| Ethereum (ETH) | $389 billion | $3235 |
| Binance Coin (BNB) | $84 billion | $575.82 |
| Solana (SOL) | $82 billion | $178.27 |
6 more rows7 days ago
Shiba Inu's 200 day moving average is sloping down and has been doing so since 7/25/2024 which means the trend is weak. On the four-hour time frame, if we were to give a Shiba Inu price prediction, it would be bearish considering the way the 50 day and 200 day moving averages are bearish.
Is Shiba backed by anything? ›
The Shiba Inu network is secured through the process of staking SHIB. It's also based on the Ethereum network, which currently employs the Proof of Work consensus mechanism.
Will SHIB reach 1 cent? ›
According to insights from BTCC, if SHIB were to undergo a 50% coin burn annually for the next two decades, it would take approximately 19 years to reach 1 cent. However, more conservative estimates from CoinCodex suggest that SHIB's price might reach $0.00002997 by July 2025.
Shiba Inu Price Prediction 2050
Shiba Inu's highest trading price in 2050 is expected to be about $0.0084. According to our calculations, Shiba Inu might reach an average price of $0.0077 by 2050. Shiba Inu may also face short downturns, with the minimum price level hanging around $0.0074.
What will Shiba be worth in 2025? ›
By 2025, our price prediction forecasts that Shiba coin price could be worth $0.0000437.
How much to invest in Shiba Inu to become a millionaire? ›
To become a millionaire through Shiba Inu, one needs to own a substantial amount of the token. Based on current market prices, for instance, if Shiba Inu reaches a price of $0.00003, having 33 billion SHIB tokens would make someone a millionaire. At present prices, this amount of SHIB would cost approximately $515,000.
Which meme coin will reach $1? ›
Dogeverse is our top pick of meme coins that could reach $1 next. The project is currently undergoing a presale, where it has enjoyed meteoric success, raising over $15 million.
Which coin is best to invest in? ›
Here are six of the best cryptocurrencies to buy now:
- Bitcoin (BTC)
- Ether (ETH)
- Solana (SOL)
- Avalanche (AVAX)
- Polygon (MATIC)
- Cardano (ADA)
Brennan Whitfield | May 22, 2023. A crypto whale refers to a person or entity that holds a large amount of cryptocurrency, enough so that their transactions alone can affect the currency's market. Generally, someone owning at least 10 percent of a given cryptocurrency can be considered a whale.
How much shiba do you need to be a whale? ›
FAQs. What is Considered a Whale for Shiba Inu? The phrase “whale” is used to describe people who hold large amounts of money. Ethereum whale has become the largest holding in the Shiba Inu market, with more than 1B SHIB tokens in its possession.
How do whales pump and dump crypto? ›
**Manipulation by Whales**: Large investors (whales) can manipulate the market by buying large quantities of a cryptocurrency to drive up the price (pump), creating a buying frenzy among smaller investors. Once the price peaks, they sell off their holdings (dump), causing the price to crash.
How much crypto does a whale have? ›
The exact threshold for what constitutes a whale is not precise, but it's generally agreed that ownership of a large amount of a cryptocurrency's circulating supply qualifies one as a whale. For instance, an entity that holds at least 1,000 BTC is often considered a Bitcoin whale.
