Shiba Inu (SHIB), the prominent memecoin, has shown considerable activity in recent days. This dog-themed cryptocurrency, often noted for its speculative characteristics, has broken through key resistance levels after several weeks of trading within a narrow range. This volatility has sparked speculation among investors who are eager to understand the factors driving the price movement.
SHIB experienced a remarkable 21.47% rally over the past three days, consistently closing in positive territory each day. This recent surge is only the second instance in May where the memecoin has posted three consecutive days of gains, driven by developments specific to the SHIB’s ecosystem.
On-chain data indicates continuous capital flow between prominent memecoins, especially PEPE and SHIB. Following a period of remarkable growth in recent weeks, PEPE has entered a correction phase, with some investors capitalizing on their gains.
SHIB ETF Speculation Boosts Market
However, Market analysts have noted that most whales exiting PEPE are not simply liquidating their holdings. Instead, they are reallocating their capital into other cryptocurrencies, with SHIB being a primary beneficiary. This shift in investment focus is likely a significant factor behind the recent surge in SHIB’s activity over the past few days.
Shytoshi Kusama, the lead developer of Shiba Inu, has recently considered the possibility of launching a SHIB-based Exchange-Traded Fund (ETF). This exploration comes on the heels of the U.S. SEC’s recent approval of an Ethereum ETF, sparking increased speculation within the SHIB community. Kusama’s inquiry has gained significant support and excitement, resulting in a notable capital influx into the SHIB ecosystem.
An increase in trade volume is another factor contributing to the recent volatility in SHIB. SHIB’s merchants reportedly exchanged more than $132 million worth of tokens in a single day, totaling 5.354 trillion coins. The main reason for this huge volume was the large-scale whale transactions. These big deals show that institutional investors are becoming more involved, which is probably another reason behind the recent price surge.
Related Reading | Whales, ETF prospects, and market surge behind SHIB’s recent rally.
Furthermore, the author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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