What happened
As of 12:30 p.m. ET, the Nasdaq remains in the red, following a steep morning sell-off that saw significant declines in all major indexes from their earlier gains this morning. That said, equities have begun to rally higher, pushing cryptocurrencies like Shiba Inu (SHIB -2.66%) that have had a mostly solid green day even higher. As of 12:30 p.m. ET, Shiba Inu has surged 11% higher, cutting its seven-day loss in half in today's session.
One of the key drivers of today's rally in Shiba Inu is news that it is among the most traded tokens for Ethereum whales, and has recently hit an all-time high in the number of wallets holding the token. These metrics are solid indications that the community-oriented token is seeing its community grow stronger on this recent dip.
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So what
Reportedly, Shiba Inu has surged into the top spot among the most traded cryptocurrencies by Ethereum whales over the past 24 hours, surpassing Uniswap. This move suggests there are a number of influential, and wealthy, crypto traders who believe momentum may be coming back to the meme token trade.
Additionally, the number of wallets holding Shiba Inu has surged, suggesting that the breadth of investors holding this token is widening. Unlike many cryptocurrencies that are often highly centralized in terms of ownership, this broadening investor base could be bullish for momentum-driven rallies, assuming retail investors hold on to their positions.
Now what
Shiba Inu remains among the most volatile crypto tokens in the market right now. As far as large-cap tokens go, Shiba Inu's high-beta moves provide for more of a trading vehicle than a long-term investment, for most in the crypto world. However, as Shiba Inu's investor base broadens, perhaps the volatility dynamics with this token will change as well. Time will tell.
For now, positive momentum in the crypto market is spurring yet another impressive day for Shiba Inu holders. For those looking at this token from the outside, this ongoing market volatility may provide for an entertaining ride from here.
