What Does a Million Shiba Inu Holders Mean for the Market?
An official audit report was recently published on the Shiba token website. According to the report, the number of Shiba Inu (SHIB) wallet owners has surpassed one million. This is significant progress for meme tokens and a watershed moment for the Shiba Inu community which was celebrated on the official twitter account on November 25. Even though the number of holders has increased significantly, the current trading price is still approximately 50% lower than at its peak. As of the time of writing, the trading price of SHIB on BigONE Exchange is $0.0000455, a drop of nearly 50% from the historical high of $0.0000879 announced on October 27, and a drop of approximately 4.43% in the last 24 hours.
Image: the Shib tweet announcing 1m holders.
Despite the fact that each SHIB costs less than a dollar, its overall market value is very high. Market capitalization is critical for any asset’s appreciation potential. The total circulating supply multiplied by the current unit price yields the overall market value. According to CoinMarketCap data, SHIB ranks 12th in the cryptocurrency field with a market capitalization of $24.3 billion, just one step ahead of DOGE, which ranks 11th.
What does this have to do with the market?
SHIB is not the only meme token among numerous so-called pet coins. DOGE, the most popular meme token, has also dropped by about 1.08% in value in the last day. BigONE believes that meme coin’s recent decline is related to the popularity of the metaverse concept. Some cryptocurrencies associated with metaverse have recently performed well. As a result, the popularity of various meme coins, including canine cryptocurrencies, has declined. Some investors may view this decline as an opportunity to buy at a low price. Although this is possible, BigONE believes that, given the growing popularity of the metaverse concept and the current supply of SHIB tokens, it will be difficult to outperform historical prices in a short period of time and achieve a generous return on investment.
Given the large number of cryptocurrencies currently available for SHIB, BigONE believes that, while it may appear to be a mathematical problem on the surface, it may cause fear, doubt, or uncertainty in the market. If SHIB miners continue to mine in large quantities, the excess supply will decrease their fees further, a condition known as oversupply. The only solution is to severely limit future mining and drastically reduce current supply. That said, as reported in Fortune on November 4, “holders of SHIB have also been burning it at a seemingly escalating rate. So far, about 41% of the initial supply of SHIB has been destroyed, according to Shibburn.com. In doing so, the burners have boosted SHIB’s value by slashing the amount of tokens in circulation”.
Nonetheless, ordinary investors remain enthusiastic about SHIB. In addition, major cryptocurrency exchanges around the world have launched a variety of SHIB-related activities and products, such as trading competitions and activities, and BigONE recently launched its AMM liquid mining products and a “dual mining” activity. You can reap double benefits if you participate. The 24-hour annualized rate of return of SHIB/USDT in BigONE’s liquid mining products is as high as 458.09% as of the publication of this article, which is an impressive performance.
A new type of SHIB scam is circulating.
Shiba Inu must continue to provide more use-cases to compete with the growing advantages of other projects to maintain continuous growth. So, it was good to see that major US electronics retailer Newegg announced on November 29 that it will start accepting SHIB as part of its holiday promotional campaign, starting “by early December.”
Every day, many new projects are launched in the cryptocurrency market. Many new functions and use-cases are provided by these projects, including games, NFT, loans, environmental protection, and agriculture. However, as an investor, you must also pay attention to negative news about SHIB in addition to its growth. Shiba Inu’s official Twitter account recently issued a warning about a new type of scam targeting SHIB token holders.
Shiba Inu issued this official warning in response to a recent scam on social media and other communication platforms. A bogus SHIBA Telegram group is circulating on social media. Scammers pose as official accounts to steal user information for illegal purposes. As a result, BigONE reminds all investors that Shiba Inu will not officially release airdrops, bonuses, or gifts. When investing in crypto projects, whether meme coins like SHIB or well-known crypto currencies like Bitcoin, investors should always exercise caution.
