Shiba Inu (SHIB) can make a lot of millionaires, but are they really investors?
In a typical meme coin trend, investors compared SHIB to a “goose that lays golden eggs”. The asset is trending on social media platforms and its 24-hour trading volume is equivalent to a market cap of ~ $ 15 billion each. Meanwhile, at press time, ETH has a market capitalization of $ 420.6 billion and a 24-hour trading volume of $ 18.14 billion.
The source: Twitter
The current SHIB craze is reminiscent of DOGE in early 2021. Seeing similar excitement this time around, investors did not hesitate to invest in such speculative assets.
However, there are some differences between SHIB and DOGE in terms of on-chain operations.
Does SHIB have strong on-chain activity?
When DOGE bounced back from January to February 2021, the one who rocked the market was none other than Elon Musk. At the time, the Tesla CEO was busy tweeting and endorsing Dogecoin’s “Reputation”, “Network”. Sometimes it is praised better than Bitcoin, but its needed support wears off over time. And DOGE has never achieved on-chain metrics or major whale activity either.
It’s a retail craze and the “put in, take out” scenario is lucrative for some people. At SHIB, however, the story is very different.
Source: trade view
Before the rally began in the past few days, a whale investor bought over $ 6 trillion in SHIB on Sept. 30, valued at $ 43 million Bitcoin magazine reported. He added another 276 billion tokens on October 2nd before the rally started on October 4th.
In addition, the number of active addresses on SHIB is also impressive. In fact, the Sanbase data shows that apart from the rally, the altcoin remained strong during the bearish period.
SHIB price (green) and net profit / loss (pink) | Source: Sanbase
At the time of writing, some potential signs of proposed highs are based on a lower profit margin. This is a logical uptrend, but it can create false confidence among investors.
In the past, such behavior was punished by the market. But until now, SHIB is still in operation. Still, what are their use cases and benefits right now?
SHIB utilities and use cases
When it was launched 5 months ago, SHIB was presented to the community as an “experimental token” to be used in the ShibaSwap (DEX) decentralized exchange. The DEX market was growing at the time, so it made sense in terms of features in general (predictably more useful than DOGE).
ShibaSwap is actually a DEX at the moment. But here’s the thing: ShibaSwap has a TVL of $ 270 million. TVL regulates the base value of each DEX. And the above figure is shockingly low given that SHIB has a market cap of over $ 15 billion.
By comparison, Uniswap’s TVL is around $ 6.7 billion at press time. And yet, at $ 13.4 billion, its market cap is lower than SHIB’s. Simply put, TVL and UNI’s market capitalizations are comparable and close to each other.
It is clear that investors want to make quick money in SHIB, but what is the return on an investment in SHIB?
It should be clarified that any strong on-chain activity by the SHIB without valid confirmation of the operation, the asset may or may not continue to increase.
New ATH? Yes, definitely possible! Nothing is impossible with meme coins and DOGE taught us that lesson earlier this year.
However, investing in SHIB is no ordinary investment. It is no different from gambling, although it brings players millions in winnings.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Minh Anh
According to AMBCrypto
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
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Shiba Inu (SHIB) can make a lot of millionaires, but are they really investors?
In a typical meme coin trend, investors compared SHIB to a “goose that lays golden eggs”. The asset is trending on social media platforms and its 24-hour trading volume is equivalent to a market cap of ~ $ 15 billion each. Meanwhile, at press time, ETH has a market capitalization of $ 420.6 billion and a 24-hour trading volume of $ 18.14 billion.
The source: Twitter
The current SHIB craze is reminiscent of DOGE in early 2021. Seeing similar excitement this time around, investors did not hesitate to invest in such speculative assets.
However, there are some differences between SHIB and DOGE in terms of on-chain operations.
Does SHIB have strong on-chain activity?
When DOGE bounced back from January to February 2021, the one who rocked the market was none other than Elon Musk. At the time, the Tesla CEO was busy tweeting and endorsing Dogecoin’s “Reputation”, “Network”. Sometimes it is praised better than Bitcoin, but its needed support wears off over time. And DOGE has never achieved on-chain metrics or major whale activity either.
It’s a retail craze and the “put in, take out” scenario is lucrative for some people. At SHIB, however, the story is very different.
Source: trade view
Before the rally began in the past few days, a whale investor bought over $ 6 trillion in SHIB on Sept. 30, valued at $ 43 million Bitcoin magazine reported. He added another 276 billion tokens on October 2nd before the rally started on October 4th.
In addition, the number of active addresses on SHIB is also impressive. In fact, the Sanbase data shows that apart from the rally, the altcoin remained strong during the bearish period.
SHIB price (green) and net profit / loss (pink) | Source: Sanbase
At the time of writing, some potential signs of proposed highs are based on a lower profit margin. This is a logical uptrend, but it can create false confidence among investors.
In the past, such behavior was punished by the market. But until now, SHIB is still in operation. Still, what are their use cases and benefits right now?
SHIB utilities and use cases
When it was launched 5 months ago, SHIB was presented to the community as an “experimental token” to be used in the ShibaSwap (DEX) decentralized exchange. The DEX market was growing at the time, so it made sense in terms of features in general (predictably more useful than DOGE).
ShibaSwap is actually a DEX at the moment. But here’s the thing: ShibaSwap has a TVL of $ 270 million. TVL regulates the base value of each DEX. And the above figure is shockingly low given that SHIB has a market cap of over $ 15 billion.
By comparison, Uniswap’s TVL is around $ 6.7 billion at press time. And yet, at $ 13.4 billion, its market cap is lower than SHIB’s. Simply put, TVL and UNI’s market capitalizations are comparable and close to each other.
It is clear that investors want to make quick money in SHIB, but what is the return on an investment in SHIB?
It should be clarified that any strong on-chain activity by the SHIB without valid confirmation of the operation, the asset may or may not continue to increase.
New ATH? Yes, definitely possible! Nothing is impossible with meme coins and DOGE taught us that lesson earlier this year.
However, investing in SHIB is no ordinary investment. It is no different from gambling, although it brings players millions in winnings.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Minh Anh
According to AMBCrypto
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
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