Image source: Getty Images

SHIB rises over 25% as Ethereum whales begin holding more of the coin. Will Shiba Inu become the Dogecoin killer it always wanted to be?

Key points

• SHIB is a meme coin, predicated on a famous image of the face of a Shiba Inu dog, and hopes to become more popular than Dogecoin in the long run.
• SHIB just became the second-biggest asset held by Ethereum whales, and many seem to be following this investment.

Shiba Inu, one of the most famous meme coins on the market today, has begun to rise dramatically. This comes after a recent cryptocurrency news announcement that SHIB has become the second-most held asset by Ethereum whales, surpassing USDT. As these whales have begun increasing their SHIB investments, others seem to be doing the same. With the value of SHIB rising so fast, will this jump be a flash in the pan or a major shift in SHIB’s status quo?

SHIB in a nutshell

Created anonymously in August 2020, Shiba Inu gained popularity quickly due to its use of a popular image of a Shiba Inu dog. This digital currency presents itself as something of a counterpart to Dogecoin, another meme coin with popularity, fame, and support from major influencers like Elon Musk. SHIB made headlines when it jumped over 40% very quickly. Many thought it was capable of dethroning Dogecoin as the leading meme token, but it has since fallen back below its competitor. After attracting millions of investors, SHIB is now seeing more desire from high-level investors, and many seem to be following this investment strategy. In order for SHIB to grow beyond Dogecoin and stay ahead in the game, its value must continue to rise.

In the wallet of a whale

When a wallet on the Ethereum network holds a high enough average value of crypto, that wallet is dubbed a “whale.” These whales often invest in different types of cryptocurrencies, diversifying their portfolios. The biggest asset among Ethereum whales is USDC, while the second highest (formerly USDT) has now become SHIB. Smaller, more casual investors sometimes mimic the investments of larger ones, trusting the strategy of more experienced individuals over their own. This seems to be happening with SHIB, as the price continues to rise after the whales have bought up their share. This could be a major resurgence for the popularity of SHIB. While this coin has fallen far from its height, many are beginning to wonder if SHIB could recover and eventually accomplish its goal of conquering Dogecoin.

The bottom line

SHIB is rising fast, but it is difficult to tell whether this rise will be a long-term trend or a short-term fluke. SHIB’s lack of real-world use cases makes it difficult for this token to be adopted by many as anything more than a medium of exchange. With so many different types of cryptocurrencies being held by whales, however, it is noteworthy that SHIB has become the second-most held asset by these experienced investors. If more and more individuals continue to commit to SHIB, the coin could break into the top 10 alongside Dogecoin. If SHIB rebounds, investors may be hesitant to jump back on board with SHIB. While SHIB is rising, the volatility of the crypto market ensures that an investment in this coin carries great risk and potentially great rewards.

Interested in committing to crypto, but not sure how it works? Check out our beginner’s guide to investing in cryptocurrency to start investing today!