HomeMemecoin NewsSHIBWhat’s Fueling SHIB’s 784% On-Chain Explosion?

What’s Fueling SHIB’s 784% On-Chain Explosion?

Date:

  • Major investors surged 784.8% in net flows, acquiring 874B SHIB tokens, which equals $10.4M.
  • Increased inflows to whale wallets increased by 315.4%, potentially cutting available supply.
  • Following massive crypto market losses and liquidations, a 6% intraday rise suggests traders are cautiously re-entering.

Dog-themed memecoin Shiba Inu (SHIB) is scaling back in the light of a major surge in what is a very critical onchain metric, becoming in motion of a new interest from important investors no less than a week when the crypto market was very unstable.

According to data from blockchain analytics firm IntoTheBlock, SHIB has seen a massive 784.8% increase in large holder net flows, which measures the flow of tokens into large whale and institutional pockets. This sharp rise shows that either very big players are very heavily amassing SHIB or might be sectoring a big portfolio change.

SHIB Netflow Spikes Following Trump’s April 2 Speech

Aside from that, large holder inflows that follow the movement of SHIB tokens during the transfer process to whale wallets spiked 315.4%, aligning with the notion that big players believe in the meme coin once again.

The netflow chart data from April 2 until April 6 confirms that a collection of these major wallets acquired over 874 billion SHIB tokens. Notably, this accumulation occurs after former President Trump made his Liberation Day speech on April 2, in which he announced a sweeping tariff. The fact that this occurs at the same time as geopolitical developments may explain why whales were forced to make strategic purchases.

Source: IntoTheBlock

Since most large holder uses sophisticated cold storage, the constant inflow and consistent trend could indicate a reduced SHIB supply on exchanges in the short term. And that dynamic could have helped the first of a possible two recovery rides for SHIB, on Monday after the world’s eleventh largest coin had dropped to a 13 day low.

Whales Purchased 874 Billion SHIB Amid Market Turmoil

At present, the 874 billion SHIB purchased by whale investors is valued at around $10.4 million. It’s unclear if this is based on speculation driven momentum or faith in SHIB’s fundamental developments, such as the ongoing Shibarium development, but the acquisition has brought the conversation and interest in SHIB in crypto circles back.

SHIB is experiencing a modest comeback after a relentless sell of assets that rattled the market just 24 hours ago. As of this writing, Shiba Inu was 2% down in the last 24 hours, trading at $0.0000111 with intraday highs at $0.00001173. The recovery came after the token hit a steep decline, which saw it fall to $0.00001028, down from $0.00001567, reached on March 26.

Source: Coinmarketcap

Major coins dropped more than 20% in value and $1.4 billion worth of crypto-tracked futures were liquidated by the crypto market at the start of the week. The result was a piece of market chaos that briefly takes Bitcoin below $75,000 and back to nearly $80,000, creating a relief rally to lift a bunch of tokens, including SHIB.

The rebound is also attributed to traders unwinding their excessive short positions and reassessing oversold conditions, especially imitating such ruthless downside pressure. This broader sentiment shift indicates that SHIB’s price movement, a 6% intraday spike during or following the impact of the explosion, serves as an indicator that investors are cautiously re-entering the market.

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Muhammad Ali
Muhammad Ali
Muhammad is an experienced crypto-journalist. After five years in the field, he has become a respected authority on several top tier crypto media platforms. As a journalism and finance graduate, he plans to capture the world’s progress toward crypto and fintech industry.

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