Shiba Inu (SHIB) Soared 30% Yesterday. Is Now the Time to Buy?
KEY POINTS
- According to CoinMarketCap, on Sunday, dog-themed crypto Shiba Inu shot up more than 30% from a low price of $0.00001516 to $0.00001774. At press time, the price has moderated to $0.00001604, with strong trading volume of $3.6 billion today.
- It's not clear what the price trigger was, but website WhaleStats shows that SHIB is the second largest, non-stablecoin holding of the top-100 Ethereum wallets which have an average of $16 million ETH on reserve.
Trading volume over the past 24 hours is up 125% as more than $3.6 billion of the cryptocurrency changed hands.
It seems that there's still some bite in the dog-themed meme Shiba Inu (SHIB). On Sunday, the price of an individual SHIB token surged more than 30% to an intraday high of $0.00001774 from $0.00001516, according to CoinMarketCap. Since then, the price has leveled out to $0.00001604 as of this writing, but trading volume for the token was still strong with $3.6 billion moving through cryptocurrency exchanges over the past 24-hour cycle.
While there was no apparent catalyst for SHIB's price spike yesterday, the top-100 largest Ethereum (ETH) wallets have Shiba Inu as the second largest non-stablecoin holding according to WhaleStats. Those wallets hold more than 8,200 ETH worth more than $16 million on average. The SHIB token does not yet have its own blockchain and relies on the Ethereum network for all transactions, which is one of the reasons the once high-flying pup coin is a favorite of heavy ETH holders who indirectly benefit from high traffic on the Ethereum blockchain.
Is now the time to buy SHIB?
During the past two weeks, Shiba Inu has added a couple hundred new wallets each day pushing the total number of SHIB wallets to 1,206,272, shows CoinMarketCap data when viewed on the one-month timeline.
While things have been quiet for SHIB lately, it's possible that this steady increase in wallets reflects positive announcements for the meme token earlier this year such as its metaverse launch, success of its NFT collection, its listing on the Robinhood trading app, and chatter surrounding the rumored rollout of its own blockchain.
In spite of those developments, SHIB is deeply discounted from its peak price of $0.00008845 in October 2021 by more than 81%. Keeping in mind that this is not financial advice and investors should be aware of how much they can comfortably risk to invest, the Shiba Inu project has a lot of uncertainty -- even for the crypto space. So, it's probably best for average investors to let the price of this sleeping dog token continue to lie until there's noteworthy news and clearer reasons to jump in.
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Our Research Expert
Tor Constantino is a corporate communications executive and business writer with an MBA. Since 2017, he has written about cryptocurrencies, blockchain, and crypto's potential to revolutionize finance. His writing has appeared in outlets including Entrepreneur, Forbes, Fortune, CEOWorld, and Yahoo!.
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