- MakerDAO’s founder sold large amounts of SHIB, which impacted the memecoin’s price.
- Network growth for SHIB grew despite declining prices, indicating continued interest.
Shiba Inu[SHIB] was among the memecoins that saw a significant price increase in recent weeks as bullish sentiment grew in the crypto market.
What are whales doing
However, large amounts of SHIB sell-off of whales have recently been observed. One of the most recent was created by Rune, co-founder of MakerDAO[MKR]who recently engaged in strategic financial moves by selling SHIB for a profit.
Earlier this week, Rune invested $500,000 in USDC to acquire 25 billion SHIB, and then sold 8 million SHIB for 245.5K USDC. With 17 billion SHIB left, worth $531,000, Rune has realized approximately $275,000 from these transactions.
Source:
These large transactions often lead to abrupt drops in SHIB prices, creating volatility and market uncertainty. The sudden increase in supply can put pressure on liquidity, making it challenging for traders to execute trades smoothly.
Furthermore, continued sell-offs of whales can undermine investor confidence as it signals a lack of belief in the project or potential problems. This loss of confidence could contribute to long-term declines in SHIB’s value, affecting its overall long-term viability.
How are things going with SHIB?
At the time of writing, SHIB was trading at $0.000036 and the price had fallen 7.99% in the last 24 hours. While some aspects of the correction can be attributed to whale behavior, the falling price could also be due to general market sentiment.
Both BTC and DOGE also witnessed a price drop in recent days, demonstrating the bearish outlook of the market at the time of writing.
Despite these factors, overall network growth for SHIB continued to increase, indicating that new addresses continued to show interest in SHIB. The increasing network growth may indicate that retail investors continued to accumulate SHIB despite the whaling behavior.
Moreover, the velocity around SHIB had also increased during this period, indicating that the frequency of transactions from SHIB had increased.
Source: Santiment
How much are 1,10,100 SHIBs worth today?
In terms of the ecosystem, it was noted that Shiba Inu were doing relatively well.
AMBCrypto’s analysis of Santiment’s data showed that the number of active accounts on the Shibarium ecosystem has grown significantly in recent days. In addition, the number of new accounts created on the network also increased.
Source: Shibarium