Shiba Inu On The Edge Of Historic Run As Investors Accumulate 770 Billion SHIB

Scott Matherson

11 months ago

3 mins read

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Shiba Inu (SHIB) is on the verge of a historic run, as investors have accumulated a significant amount of Shiba Inu tokens in recent days. However, the meme coin’s fundamentals remain concerning as they paint a bearish picture for SHIB.

Shiba Inu Set For A Historic Run In October

Shiba Inu is set to enjoy a parabolic rally in October if history were to repeat itself. Data from CryptoRank shows that the meme coin has always enjoyed monthly positive returns in October. During the 2021 bull run, SHIB’s price skyrocketed by 833% in October of that year, while it enjoyed modest gains of 10% and 6% in October 2022 and 2023, respectively.

Therefore, Shiba Inu could record significant gains this October. Moreover, the outlook for the broader crypto market in October is also bullish. For instance, Bitcoin has historically enjoyed its highest returns between October and December. The flagship crypto is again expected to enjoy a price rally starting in October.

As such, Shiba Inu’s price will also rally as Bitcoin enjoys an upward trend. Data from the market intelligence platform IntoTheBlock shows that SHIB’s price correlation with BTC is currently at 0.89, which indicates a strong positive price correlation between both assets. This proves that the meme coin will rally as Bitcoin moves to the upside.

Shiba Inu investors are already preparing for the historic run as data from the on-chain analytics platform Cryptoquant shows that they have accumulated 770 billion SHIB between September 23 and 24. This figure represents the outflows that left exchanges in these two days. Moving coins off exchanges indicates that these investors intend to hold for the long term.

This accumulation trend among these investors could also contribute to the price surge that Shiba Inu could enjoy in October.

Fundamentals Remain A Concern

Shiba Inu’s fundamentals are a concern, as they paint a bearish picture for the meme coin. Data from the Shiba Inu burn tracker Shibburn shows that the coin’s burn rate has dropped over 90% in the last 24 hours. Meanwhile, there has also been a 61% drop in the number of tokens burnt in the last seven days.

The lack of network activity on Shibarium is another bearish fundamental. Data from the Shibarium explorer shows that daily transactions on the layer-2 network remain stagnant and below 10,000. A recent high was the 11,360 transactions witnessed on September 19. However, the following day, daily transactions dropped to 8,000.

The low activity on Shibarium has also contributed to the drop in Shiba Inu’s burn rate. Base transaction fees on Shibarium are usually converted to SHIB and burnt. However, with such low interest in the layer-2 network, there is a limit to how many SHIB tokens can be burnt.

At the time of writing, Shiba Inu is trading at around $0.000014, up over 3% in the last 24 hours, according to data from CoinMarketCap.

Shiba Inu price chart from Tradingview.com — SHIB price shows strength | Source: SHIBUSDT on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

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