Shiba Inu Whales Stock Up on 30 Trillion SHIB Amid Price Slump

Despite a recent price slump, crypto whales are significantly increasing their holdings of the Shiba Inu (SHIB) meme coin, signaling strong confidence in its long-term potential. Although SHIB has shown lackluster performance this month, with a notable price drop of over 11% since March, whales continue to accumulate massive amounts of the token.

Whale Accumulation Amid Price Decline

Shiba Inu (SHIB) reached a local high of $0.0000457 on March 5 but has since plummeted to around $0.000024. This decline has contributed to a monthly loss exceeding 11%, even as the broader cryptocurrency market remains volatile. Notably, the approval of a spot Ethereum ETF failed to boost SHIB’s price, indicating a disconnect between market developments and SHIB’s performance.

Data from the crypto analytics platform IntoTheBlock shows that Shiba Inu whales have been aggressively buying the token throughout May. Large whale transactions have resulted in the accumulation of 30 trillion SHIB tokens this month alone, highlighting the token’s appeal among big investors. On May 20, whales purchased 1.7 trillion SHIB tokens in a single day. This pattern of accumulation suggests that these investors are betting on SHIB’s future potential, preparing for a possible uptrend.

Positive Developments and Increased Activity

Several factors could be contributing to this bullish sentiment among whales. Earlier this week, Coinbase announced the expansion of its offerings by launching perpetual futures contracts for SHIB. Additionally, the cryptocurrency exchange added support for other popular meme coins, including Bonk Inu (BONK), Floki Inu (FLOKI), and XRP.

Following these announcements, SHIB’s trading volume surged by nearly 43% over the past 24 hours, reaching $904.9 billion, according to CoinMarketCap. This spike in trading activity reflects increased interest and engagement with the token, potentially setting the stage for future price movements.

Moreover, SHIB’s burn rate—a measure of the tokens permanently removed from circulation—exploded by 579% on May 19. This reduction in the supply of SHIB by 12.70 million tokens could lead to increased demand, as a lower supply typically exerts upward pressure on prices. The burn rate’s significant rise suggests a bullish sentiment among investors, further supported by the whale accumulation trend.

Long-Term Prospects and Market Sentiment

The ongoing accumulation of SHIB by whales amidst a price decline underscores a broader strategy of positioning for long-term gains. Despite the recent downturn, these large investors seem confident in SHIB’s potential to recover and grow. The substantial increase in whale activity and the associated burn rate indicate that significant market players believe in the token’s future value.

As the cryptocurrency market evolves, the interplay between market trends, regulatory developments, and investor behavior will continue to shape the landscape. For SHIB, the current accumulation by whales and positive developments on major exchanges like Coinbase are promising signs. These factors could catalyze a future rally, especially if the broader market conditions align favorably.

In conclusion, while Shiba Inu (SHIB) has experienced a challenging month with a significant price drop, the continued interest and accumulation by whales suggest a strong belief in its long-term potential. With increased trading volume, a rising burn rate, and supportive developments from major exchanges, SHIB may be poised for a rebound, driven by both retail and institutional investors.

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