By
Godfrey Benjamin
May 10th, 2024
Despite the morning sell-off, Shiba Inu quickly bounced back, showcasing its resilience and defying the odds.
Shiba Inu (SHIB) enthusiasts experienced a rollercoaster of emotions as the token’s price surged by an impressive 50% within the last 24 hours, only to witness a dramatic drop of the same magnitude on the US exchange Coinbase Global Inc (NASDAQ: COIN).
Shiba Inu’s Sudden 50% Drop on Coinbase
In the early hours of today, Shiba Inu holders were caught off guard as the token’s price plummeted by 50% on Coinbase, from $0.000044 to $0.000022. This sharp decline occurred amidst a broader sell-off triggered by a mild downturn in Bitcoin (BTC) prices.
However, this drop was peculiar, as it was not mirrored on other exchanges such as Bybit and Kraken, where SHIB maintained an average price of $0.000036. Analysts attributed this anomaly to a possible imbalance between sell orders and available liquidity on Coinbase.
Despite the morning sell-off, Shiba Inu quickly bounced back, showcasing its resilience and defying the odds. Within the same 24-hour period, SHIB’s price surged by an astonishing 50%, reaching $0.0000397, according to data from CoinMarketCap. This upward momentum has been part of a broader trend within the meme coin sector, with Shiba Inu leading the pack with a staggering 281% gain over the past seven days.
The recent rally in SHIB prices has not only captured the attention of investors but has also generated substantial profits for holders. Reports indicate that over 84% of SHIB investors are currently sitting on paper profits, a stark contrast to the situation just a few months ago when the majority were underwater.
Driving Forces Behind SHIB’s Surge
Several factors have contributed to Shiba Inu’s meteoric rise. Firstly, the development milestone achieved by Shibarium, a layer-2 scaling solution designed to enhance the speed and reduce transaction costs within the Shiba Inu ecosystem, has sparked renewed interest in the token.
With total blocks on the network surpassing 3.5 million and total transactions nearing 400 million, Shibarium’s potential to foster growth and innovation cannot be overstated. Additionally, the recent surge in Shiba Inu’s burn rate, with 130 million tokens removed from circulation in the past 24 hours alone, has further fueled investor optimism.
This spike, coupled with a remarkable increase in daily trading volume, which now exceeds $13 billion, has propelled SHIB ahead of other prominent cryptocurrencies such as Dogecoin (DOGE), Cardano (ADA), XRP, and Solana (SOL) in terms of trading activity.
The surge in Shiba Inu’s price has coincided with a notable increase in whale transactions, with one entity transferring 1.25 trillion SHIB valued at over $41 million to the popular trading platform Robinhood.
🚨 🚨 1,250,318,249,876 #SHIB (41,329,269 USD) transferred from #Cumberland to unknown wallethttps://t.co/i7SYyYui4K
— Whale Alert (@whale_alert) March 4, 2024
While the identity of the individual or organization behind the transfer remains unknown, speculation suggests the involvement of a crypto hedge fund or venture capital firm. This transfer highlights the growing institutional interest in meme-based cryptocurrencies and further validates Shiba Inu’s position as a formidable player in the crypto space.