Whales Keep Buying Shiba Inu as SHIB Price Explodes 50%, but Here’s the Catch

March 5, 2024

Shibarium Stats Raise Concern For Shiba Inu (SHIB) Holders

Shiba Inu (SHIB), the second-largest dog-themed meme coin, continued its notable rally throughout March, gaining over 300% in the last week and 350%+ across the last 30 days. With crypto risk appetites surging, SHIB’s surge attracted notable players taking sides on whether to add exposure or take profits.

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Maker’s Christensen Bets Big on SHIB Rally Continuing

On-chain intelligence provider SpotOnChain discovered that Rune Christensen, cofounder of leading DeFi protocol MakerDAO, has begun accumulating a sizable SHIB position right as prices took off.

“MakerDAO founder Rune Christensen bought SHIB before the price surged sharply again!” the analysts revealed. “He bought 7.41B SHIB with 100K USDC for the first time on Mar 1. The price then soared by ~60%.”

But Christensen wasn’t done. SpotOnChain continues: “He bought 17.629B SHIB with 400K USDC again 12 hours ago. The price then rose by ~20%.” In total, Christensen deployed $500,000 to secure over 25 billion SHIB as momentum built.

The high-profile vote of confidence from a DeFi pioneer could further stoke bullish sentiment as Shiba Inu’s resurgence gathers steam. However, not all major crypto figures share the enthusiasm.

While the timing of the DeFi founder’s purchase might seem suspiciously perfect, it’s important to consider the possibility of coincidence. The crypto market is known for its volatility, and even experienced investors can get lucky with their trades. It’s unclear whether the founder had any insider knowledge or if their purchase was simply a well-timed bet based on market sentiment.

Tron’s Justin Sun Takes Opposing View By Selling into Strength

In contrast to Christensen’s big buys, the head of rival blockchain network Tron, Justin Sun, looks to be cashing out some profits from SHIB’s major rally. Analyst group Lookonchain tracked Sun depositing 20 billion SHIB onto the exchange Poloniex, then selling over 8 billion coins for around $212,000 of stablecoin USDC.

Still, Sun maintains a large SHIB position with over 500 billion tokens worth nearly $14 million at current prices. He also remains substantially in profit to the tune of $9.5 million on his remaining coins.

By taking some profits off the table, Sun practices prudent risk management – as SHIB’s vertical trajectory likely proves unsustainable in the short term. Consolidation or sharp pullbacks typically follow such euphoric spikes. Yet long term believers (or lucky holders) envision far greater multiples ahead.

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SHIB Hodler Turns $2500 Into $1.6 Million With 600X Return

Underscoring the immense wealth creation potential during SHIB’s historic ascent, Lookonchain also uncovered how one prescient trader transformed just $2500 into over $1.5 million by acquiring nearly 50 billion Shiba Inu tokens in 2021 and then staking them until now.

“This trader spent only 1.51 $ETH ($2,521) to buy 49.8B $SHIB ($1.93 million currently) in 2021! After 2.6 years of staking, he withdrew all 40.5 billion SHIB ($1.58 million) and deposited it into Coinbase 30 minutes ago. If he sells, he will make ~$1.58M, a gain of 628x!”

With SHIB prices already retracing over 50% from cycle highs after this wallet’s well-timed exit, more downside risk likely remains as speculators secure such incredible gains. Ultimately, by breaking prior all-time highs, SHIB reignites the meme coin craze with even greater intensity – creating a tug of war between euphoria and gravity.

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