Why Shiba Inu Has Been More Resilient Than Some SHIB Haters Would Like to Admit

“The world knows a thing or two about SHIBArmy, the community behind the self-proclaimed dogecoin killer shiba inu (SHIB). But did they know how powerful SHIBArmy can be?

SHIB, the token that’s clearly not taken seriously by most institutional investors, is still far from dead after another dumping event last week. Blockchain data reveals a tale of how small, individual investors can go against big institutions when they are united.

Since Monday, the SHIB community has been celebrating the survival of last Thursday’s bloody dump across social media platforms: “Shiba Inu rebounds 40% despite major selling by SHIB whales,” a Shiba Inu telegram group posted on Tuesday under the title “Whales are NOT in control of Shiba.” The message has since been circulating in many Telegram groups.

“We are Shiba The Doge Killer,” the message ended.

The whale dump mentioned in the message, according to blockchain data firm Santiment, took place on Thursday.

That’s when about 31.07 billion SHIB were shed from addresses that held 1 million to 10 million SHIB, wiping out 3.02% of all addresses with SHIB holding within the range. (For clarity’s sake, 1 million to 10 million SHIB is worth $27 to $272 at current prices.)

Santiment also captured a significant uptick in both active deposits and exchange inflow of SHIB at the time.

To be fair, with SHIB’s price still far below $1, the aforementioned message from Tuesday decrying the influence of SHIB whales isn’t fully supported. The top 10 SHIB addresses hold more than 78% of the total SHIB supply and barely moved any SHIB during the time period in question, according to Santiment data.

But nevertheless, the impact of such collective dumping among small SHIB traders is obvious: Last Thursday, the biggest dump so far, SHIB’s price dropped by more than $17% on the day, according to data from TradingView and Binance.

Professional traders who spoke to CoinDesk are not sure why the meme coin is showing such resiliency.

A comparison of SHIB to its predecessor, DOGE, is even more stunning: SHIB’s merely 23% down from its peak in May, according to CoinGecko. DOGE, perhaps the most well-known and popular of the dog coins, is down by more than 68% from its top in May.

“SHIB is like this ‘retail-traders-take-over-the-world’ magic token” that has gained a strong base, Darren, an active SHIB community member who goes by the name “Darren” told CoinDesk via WeChat. He added that many of the SHIB holders do not track bitcoin’s ups and downs, so it’s hard to pin SHIB’s moves on that of other cryptocurrencies.

The coin’s strong retail user base is also reflected on social media platforms, according to Du Ju, co-founder of crypto exchange Huobi, who pointed out that SHIB’s official Twitter account has more than 1.1 million followers, a higher number than most of other crypto projects.

“Shiba inu has a strong user base and its projects are relatively simple and easy to understand for crypto beginners,” Du said.”

Read the full article at CoinDesk.com