Shiba Inu Whale Made $2.5 Billion from $10,000

On-chain data has uncovered that a single large investor holds more than 10% of the total Shiba Inu token supply, sparking renewed concerns over the distribution of the second-largest memecoin globally.

This unidentified Shiba Inu whale possesses over 10% of the token’s total supply spread across 150 addresses.

Despite these holdings reaching a peak valuation exceeding $5 billion, the whale has retained their SHIB coins since 2020, according to a Nov. 19 post on X by blockchain analytics firm Bubblemaps, which reported:

“Between August and October 2020, a new player entered the scene: 0x1406 purchased 103T $SHIB (10% of the supply) for just 38 ETH. At the time, 38 ETH was worth $10k. Today, 103T $SHIB is worth over $2.5 billion.”

Since October 2020, this investor has achieved a staggering 250,000-fold return on their original $10,000 investment, now valued at over $2.5 billion. Bubblemaps referred to this as “possibly the greatest trade in history.”

Large-scale holders, or whales, can significantly influence cryptocurrency price movements. If this whale were to offload a substantial portion of their holdings, it could exert notable downward pressure on the SHIB token's price.

Despite the astronomical gains, the investor has chosen to hold their SHIB tokens, indicating strong confidence in the token’s future potential.

Year-to-date, Shiba Inu has risen by over 134%, with a 27% increase in the past month, according to TradingView data.

While Shiba Inu has lagged behind some of the top-performing memecoins, analysts suggest it could be a “sleeping giant” in the current bull market cycle.

A potential catalyst for a price rally is the emergence of a cup-and-handle chart pattern, a bullish indicator often leading to upward breakouts.

The target for such a breakout is calculated by adding the pattern’s maximum height to the breakout point.

Shiba Inu’s price might also benefit from a potential rotation of capital from its primary dog-themed competitor, Dogecoin.

Shiba Inu has underperformed Dogecoin, partly due to Elon Musk’s frequent promotion of the Department of Government Efficiency, coincidentally sharing the same initials as Dogecoin’s ticker, DOGE.

However, a shift in capital might occur as the SHIB token is currently considered extremely oversold relative to DOGE.

TradingView data shows that SHIB’s relative strength index (RSI) against DOGE stands at 14.71, suggesting reduced selling pressure compared to Dogecoin.

The RSI is a widely used momentum indicator that evaluates whether an asset is oversold or overbought based on recent price fluctuations.

Sources:

https://cointelegraph.com/news/shiba-inu-whale-holds-10-shib-supply-250-000x-2-5-b

https://x.com/bubblemaps/status/1858919223919083798

https://x.com/dhelSHIB/status/1859105329658593697/photo/1

https://www.tradingview.com/chart/?symbol=BINANCE%3ASHIBDOGE