In a surprising and bold move amidst the recent volatility in the cryptocurrency market, US-based trading platform Robinhood has made a significant increase in its holdings of Shiba Inu (SHIB) tokens. Despite the downward turn experienced by the native token of the Shiba Ecosystem, Robinhood has added over 800 billion SHIB tokens to its portfolio. This move by Robinhood demonstrates its confidence in the prospects of the token and the Shiba Ecosystem, but it remains to be seen how this risky strategy will unfold amidst the ongoing market fluctuations.
On August 30, crypto data tracking platform Arkham Intelligence revealed that Robinhood ranked as the fifth-largest holder of Ethereum (ETH) and owned 34.086 trillion SHIB tokens, valued at approximately $279.85 million. However, Robinhood didn’t stop there. Between August 31 and September 13, Robinhood’s hot wallets witnessed a massive influx of 877 billion SHIB tokens. In fact, one of the brokerage’s known wallets added 579.7 billion SHIB, bringing its total Shiba Inu holdings to 8.02 trillion tokens. This increase indicates a 2.58% rise in Robinhood’s SHIB holdings, now totaling 34.936 trillion tokens. This surge represents a remarkable 74.8% growth in the platform’s Shiba Inu portfolio in just 35 days.
Shibarium, the highly anticipated layer-2 scalability solution of the Shiba Inu ecosystem, has been making significant progress. The latest data showcases the notable milestones achieved by Shibarium including total blocks, transactions, wallet addresses, and daily transaction volume. Currently, Shibarium boasts a total of 631,140 blocks, highlighting the active usage of the layer-2 solution. The total number of transactions conducted through Shibarium has reached an impressive 2,610,228, indicating its efficiency in handling a substantial load of transactions. Moreover, Shibarium has seen a surge in wallet addresses, with 1,245,886 wallet addresses within the ecosystem. With daily transactions averaging at 200.88K, Shibarium continues to demonstrate its potential in the Shiba Inu ecosystem.
Despite the positive developments within the Shiba Inu ecosystem and the growing trust from more holders, it’s important to take a critical look at the performance of the SHIB token. Currently trading at $0.00000740, the token has shown profits over the past 24 hours. However, it’s crucial to note that SHIB has experienced significant losses over longer time frames. Over the fourteen-day, thirty-day, and year-to-date periods, the token has declined by 7.5%, 28%, and 38% respectively. This raises concerns about the long-term sustainability and potential risks associated with investing in SHIB.
In the near term, if the SHIB token continues to generate profits in the coming days, it may encounter resistance at the $0.00000756 level. This could be a potential obstacle to further price appreciation. On the other hand, if SHIB fails to maintain its current level and continues on a prolonged downward trend, there is a possibility that the token could retrace to its all-time low of $0.00000563. This scenario becomes more likely if its last support floor at $0.00000642 does not hold and the ecosystem and overall crypto market fail to spur a recovery.
As Robinhood expands its involvement in the cryptocurrency market, particularly with its increased SHIB holdings, it remains to be seen how this strategy will unfold amidst the ongoing market fluctuations. The future trajectory of the crypto market is uncertain, and it is yet to be determined whether a recovery or further decline similar to the crypto winter is on the horizon. While Robinhood’s move to bolster its Shiba Inu portfolio suggests a long-term outlook and confidence in the prospects of the token and the Shiba Ecosystem, it is important for investors to carefully assess the potential risks and volatility associated with investing in cryptocurrency.