Several factors are driving today’s 11% surge in the price of Shiba Inu, including the anticipated SHIB ETF and a heightened increase in trading activity.
Shiba Inu is enjoying a remarkable year, with its value reaching levels similar to those seen in early April. Over the last 24 hours, it has surged by 11%, contributing to an overall increase of 7% over the past week. As of press time, SHIB is trading at $0.00002881.
Admittedly, there are numerous factors contributing to today’s surge in SHIB’s value. A key event catching the eye of the crypto community involves whales executing substantial trades in the meme coin market, specifically targeting Shiba Inu (SHIB) and Pepe (PEPE).
PEPE Funds Flow into SHIB
For instance, Lookonchain previously called attention to an anonymous whale shifting investments from the frog-themed PEPE token to Shiba Inu. Initially holding 1.97 trillion PEPE tokens valued at over $6.07 million, the investor deposited them into Binance and realized a profit of $3.49 million.
A smart whale deposited all 1.97T $PEPE($6.07M) to #Binance and made a profit of $3.49M.
Then he changed his position from $PEPE to $SHIB, withdrawing 75.9B $SHIB($893K) from #Binance 3 hours ago.https://t.co/X67O2VjR1y pic.twitter.com/nL7rRDZCXT
— Lookonchain (@lookonchain) February 29, 2024
Subsequently, the whale acquired approximately $75.9 billion SHIB for $893 million, transferring these assets to an undisclosed wallet. This significant shift from PEPE to SHIB highlights the investor’s confidence, a trend that some market watchers speculate might resumed, contributing to the recent SHIB upsurge.
SHIB ETF Speculation
Amidst these market movements, discussions around the potential for a Shiba Inu-themed exchange-traded fund (ETF) have gained traction. Following the U.S. SEC approval of Ethereum spot ETFs, Shiba Inu lead developer, Shytoshi Kusama, queried the community about the feasibility of a SHIB ETF.
Although financial institutions have not presented formal proposals, the community’s enthusiasm remains high. Furthermore, an ongoing petition advocating for a SHIB ETF by Grayscale has nearly reached its goal of 10,000 signatures, demonstrating strong community support for the initiative.
Transaction Volume Spike
Shiba Inu’s market activity has also been characterized by notable fluctuations in transaction volumes. As reported by The Crypto Basic, CryptoQuant’s data indicates a significant trading surge in SHIB, with over 5.354 trillion coins valued at more than $132 million exchanged yesterday.
This represents a 169% increase in trading volume compared to the day before. According to the report, this surge in trading volume is primarily attributed to significant whale transactions. On the other hand, IntoTheBlock reported a relatively low number of transactions on May 27, totaling only 6,390.
The report further indicates a substantial rise in large-scale transactions, with 2,605 transactions ranging between $1k and $10M occurring yesterday, compared to 1,595 transactions on the prior day. Transactions involving at least $100k worth of Shiba Inu totaled approximately $91.04 million on May 27, underscoring the increased participation of large investors in the market.
