- MakerDAO founder sold large amounts of SHIB impacting the price of the memecoin.
- Network growth for SHIB grew despite declining prices, indicating sustained interest.
Shiba Inu[SHIB] was one of the memecoins that saw a significant surge in price over the last few weeks, as the bullish sentiment in the crypto market grew.
What are whales up to
However, recently, there were large amount of SHIB sell-offs observed from whales. One of the most recent ones was made by Rune, co-founder of MakerDAO[MKR], who recently engaged in strategic financial moves by selling SHIB for profit.
Earlier this week, Rune invested $500,000 in USDC to acquire 25 billion SHIB, subsequently selling 8 million SHIB for 245.5K USDC. With 17 billion SHIB remaining, valued at $531,000, Rune has realized approximately $275,000 from these transactions.
Source: X
These sizable transactions often lead to abrupt drops in SHIB’s price, causing volatility and market uncertainty. The sudden increase in supply can strain liquidity, making it challenging for traders to execute transactions smoothly.
Additionally, persistent whale sell-offs may undermine investor confidence, as it suggests a lack of belief in the project or potential issues. This loss of confidence can contribute to prolonged downturns in SHIB’s value, affecting its overall viability in the long term.
How is SHIB doing?
At press time, SHIB was trading at $0.000036 and its price had fallen by 7.99% in the last 24 hours. Even though some aspects of the correction can be attributed to whale behavior, the declining price can also be due to the overall sentiment in the market.
Both BTC and DOGE also witnessed a decline in price over the last few days showcasing the bearish outlook of the market, at press time.
Despite these factors, the overall network growth for SHIB continued to rise, suggesting that new addresses continued to show interest in SHIB. The rising network growth may suggest that retail investors continued to accumulate SHIB despite whale behavior.
Moreover, the velocity around SHIB had also grown during this period indicating that the frequency of transactions of SHIB had increased.
Source: Santiment
How much are 1,10,100 SHIBs worth today?
In terms of its ecosystem, it was observed that Shiba Inu was doing relatively well.
AMBCrypto’s analysis of Santiment’s data showcased that the number of active accounts on the Shibarium ecosystem grew significantly over the past few days. Moreover, the number of new accounts being created on the network also increased.
Source: Shibarium
