- SHIB holders had an average unrealized gain of more than 31%.
- The rally caused a sharp spike in the movement of coins that had been inactive for more than a year.
The meme coin landscape gained popularity over the past week, with almost all high-cap and mid-cap assets posting significant gains.
Shiba Inu owner profits are soaring
Amid the broader market rally, the second largest meme coin Shiba Inu [SHIB] increased by 118% over the week, a visit level not seen since May 2022 CoinMarketCap.
The price increase resulted in a sharp jump in the network’s overall profitability. At the time of writing, SHIB holders averaged more than 31% unrealized gains, AMBCrypto’s analysis of Santiment’s data showed.
Source: Santiment
Whales go to work
Naturally, the lure of high profits attracted the attention of wealthy investors, also known as whales in crypto jargon.
According to a recent report from an analytics company in the chain Scope scanA whale deposited 365.36 billion SHIB tokens, worth almost $7.4 million at market price at the time of writing, with cryptocurrency exchange Binance [BNB].
Such large inflows on exchanges usually imply an intention to sell.
The whale in question had collected SHIB tokens at a much lower price three months ago. With the latest sale, it was expected to make a profit of about $4.5 million.
However, this was not a one-time event. Whale trades across the board rose dramatically on March 2, as shown in the chart below from Santiment.
In fact, the number of trades of 1,791 was the highest since the bull market peak in November 2021.
After the transaction peak, big whale addresses dropped significantly, indicating that many of these players made a profit.
Source: Santiment
The dormant offer becomes active
Another interesting aspect of the rally was how dormant coins were activated. As many as 22 trillion SHIB tokens that did not move for more than a year were traded on March 2.
This move of previously inactive coins reflected a state of bullishness towards SHIB.
Source: Santiment
Read Shiba Inu’s [SHIB] Price forecast 2024-25
Meanwhile, the SHIB market entered the “Extreme Greed” phase, AMBCrypto noted using Hyblock Capital data.
This could potentially pave the way for stronger accumulation in the coming days, pushing SHIB’s stock price higher.
Source: Hyblock Capital