Ethereum whales buying Shiba Inu can pull the cart only so far, unless….

SHIB

For Shiba Inu, the second largest coin in the market, the past 50 days have been pretty tough. Alt has lost over 60% of the price. In the past 24 hours, the asset posted its lowest price since October 23, trading at $ 0.00002824 at the end of December 20.

However, with Bitcoin making a move above $48K, Shiba’s price gained strength noting close to 10% gains at the time of writing. In fact ahead of the sudden gains, yet again an ETH whale bought $50,000,000 worth of SHIB fueling SHIB to the moon narratives. 

So will the barking get louder?

The coin’s price is down 61.42% from its ATH at the end of October. However, there are some developments in the Shiba Inu ecosystem that have managed to keep the coin’s relevance afloat. Recently, Eric M, developer of ShibaSwap, even provided an update on the progress of Shib’s Layer 2 solution, Shibarium, saying it will be launching soon.

Additionally, SHIBA tokens have been getting burned on a frequent basis. This mechanism, to some extent, does have the potential to pull the asset’s price upwards going forward. Shiba Inu’s burning mechanism led to a total of 410,299,323,623,191 SHIB tokens or 41.02993% of the supply to burn from the initial supply of one quadrillion. 

While it’s all been a good effort to keep SHIB relevant, the dog-coin will need more than that.

Shiba got no pet lovers?

Over the last couple of weeks, high-risk, high-upside asset classes like memecoins have seen a dip in price and popularity as the market turned more volatile. Dogecoin, Shiba Inu, Floki Inu, and other Dogekillers have suffered as the market’s intent to de-risk their portfolios rose.

Nonetheless, with ETH Whales buying SHIB and amid speculation on Robinhood Shiba Inu’s listing by April 2022, the coin could see its price rebound.

WhaleStats, however, presented that most whales that presently own Shiba Inu bought it at a much higher price than today. Thus, resulting in significant losses for these whales. Further, looking at the Global In and Out of Money for SHIB it could be seen that 569.52k addresses or 54.72% of the addresses were In the Money or making a profit at the $0.000032 price level. Notably, 366.23k addresses or 35.19% were Out of the Money or facing losses. 

SHIB’s ownership statistics, on the other hand, were still of concern, with very few HODLers owning SHIB. In fact, SHIB hit 1,000,000 holders by the end of November, the rise in HODLers could be the key to SHIB’s growth as this cohort has faded from the scene as cruisers and traders dominate.

On the bright side, however, with a pump in price SHIB Trading activity over the past 24 hours on Coinbase is 67% buy and 33% sell. Nonetheless, SHIB’s low active addresses and network growth still stand in the way of the coin gaining relevance. 

In the near term, however, a rally supported by retail could help SHIB’s price pump even if the chain measures show a less active network.

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