Will whales shift profits from ETH to SHIB in the long term?

The coin meme craze took the market by storm, even though the larger coins showed decent growth. The reason lies in the massive hype and the “huge” profits that meme coins like SHIB bring. For example, the price rose 1,130% in less than a month. In fact, SHIB achieved almost 631.73% ROI for HODLer in the most recent quarter.

4-Hour SHIB Price Chart | Source: Tradingview

So the question now is, is the 11th place coin the ideal choice for a portfolio?

A “hot” phenomenon?

In the past 3 months, SHIB has entered the top 10 list of cryptocurrencies by market capitalization. However, when the larger market recovered, SHIB soon lost its rank. Surprisingly, the asset still ranks 11th and seems to be working on use cases too.

On the other hand, Bitcoin and ETH have just set up a new ATH that is dominating the larger market with a positive upward trend. So does it still make sense to keep SHIB in your portfolio?

Many people think that SHIB is a “hot” coin right now. The dominance of market cap seems to capture this story pretty well. In addition, ETH whales turn profits into SHIB. In particular on November 8th the whale ETH Gimli bought 31,343,807,428 SHIB, valued at nearly $ 1,729,551.

In addition, the total number of SHIB holders has increased in the past 2 months. In fact, the number has now passed the 930,000 mark. A whale reportedly added $ 1.15 billion in SHIB to a wallet during the BTC and ETH bull run. Therefore, this move makes investors optimistic about the “DOGE killer”.

Historically, whale accumulation drives the bullish narrative for SHIB. But do on-chain indicators tell the same story?

On-chain indicators are well maintained

After AMC Entertainment recently announced in its third quarter results that it was looking for ways to accept SHIB payments in theaters, SHIB’s social media volume skyrocketed immediately. However, the plan is still being negotiated. If all goes well, SHIB could explode again.

In addition, SHIB supply on the exchanges is still in a downtrend while the accumulation trend is maintained.

Exchange supply (red), active addresses (pink) | Source: Sanbase

The above trend underscores HODL’s high level of trust in SHIB. In addition, despite the recent consolidation, the number of active addresses is being held well. The indicator has fallen from 100K at its peak to 23K, but the number is still higher than before.

Since SHIB is holding up quite well overall, it looks like it will continue to grow.

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Minh Anh

According to AMBCrypto

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