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Shiba Inu's next move
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Shiba Inu attempts market recovery with aggressive token burns
Key points:
Shiba Inu burned over 24 million tokens over the last day, exceeding prior burn rates.
Despite the burning efforts, the price of SHIB has dropped by 20% in the last week.
News - Shiba Inu, the second-biggest meme coin by market cap, is experiencing a puzzling trend: a surge in token-burning activity alongside a price decline.
Over 24 million SHIB tokens were removed from circulation over the last day, exceeding the prior day's figures by a staggering 90%. This burn rate was even more impressive on a weekly scale, with a whopping 798 million tokens burned – a nearly 400% increase compared to the previous week.
Why burning tokens matter? Burning tokens aims to reduce supply in circulation, potentially leading to long-term price appreciation. In theory, a limited supply matched with strong demand could drive prices up.
However, this strategy seemed ineffective for SHIB. Despite the high burn rate, the price plummeted by 20% over the past week, indicating a lack of robust demand for the token.
SHIB’s on-chain metrics - An analysis of SHIB's on-chain activity supported the bearish observation. The daily number of unique addresses participating in SHIB transactions dropped by more than half over the week. The creation of new addresses has also slowed significantly, with only around 862 new addresses created on 17 April, less than half the number seen a week prior.
Despite the bearish market sentiment, most derivatives traders remain optimistic about SHIB. At press time, the Longs/Shorts Ratio, indicating the positioning of futures contracts, remained above 1, suggesting more traders were betting on a price rise.
Tether expands beyond Stablecoins with four new business divisions
Key points:
Four new divisions focus on technology, finance, mining/energy, and blockchain education.
The company has been actively involved in Bitcoin mining and education initiatives.
News - Tether, the company behind the world's leading Stablecoin USDT, is undergoing a significant restructuring to expand its reach beyond just cryptocurrency. The announcement, made on 18 April, outlined the creation of four new divisions: Tether Data, Tether Finance, Tether Power, and Tether Edu.
This move signifies Tether's ambition to become a more comprehensive player in the financial technology landscape. Tether Data will focus on strategic investments in cutting-edge technologies like artificial intelligence and peer-to-peer platforms. Tether Finance, on the other hand, will continue to handle the company's core stablecoin business and financial services.
What’s more? Tether Power reflects Tether's growing interest in the mining and energy sector, while Tether Edu aims to promote blockchain adoption and digital literacy through educational initiatives.
Well, this restructuring isn't Tether's first foray beyond Stablecoins. In 2023, the company actively entered the Bitcoin mining industry, establishing its own mining operations and developing proprietary software.
Ethereum whale shifts $15M to exchange amidst Hong Kong ETF buzz
Key points:
An Ethereum whale transferred $15 million worth of ETH to Kraken.
The whale might be taking profits after acquiring ETH at a lower price in 2022.
News - An Ethereum whale recently transferred 5,000 ETH, worth over $15 million, to the Kraken exchange. This transaction followed news of ETF approvals in Hong Kong, but the impact on price remained unclear.
Analysts believe the whale might be cashing in on profits, considering it held a much larger amount of ETH in September 2022 at a lower price point. However, the Ethereum price chart shows a slight downward trend over the past few days, despite a small weekly gain.
What about the technical indicators? Technical indicators like RSI and MACD suggest a bearish trend for ETH, even with the positive news from Hong Kong. Interestingly, netflow data revealed an increase in ETH leaving exchanges, despite a brief period of inflow on 16 April.
Well, the lack of significant price movement after the reported ETF approval in Hong Kong could be due to the absence of an official confirmation. Investors are advised to be cautious, remembering past instances of fake news surrounding ETF approvals.
Even with an official announcement, the impact on the market might be limited due to potentially lower trading volumes in Hong Kong compared to the US.
External factors cause temporary Pax dollar depeg, Paxos confirms
Key points:
Pax Dollar briefly deviated from its $1 peg due to pricing aggregator issues.
Paxos claims the protocol itself functioned normally.
News - Pax Dollar (USDP), a stablecoin pegged to the US dollar, briefly strayed from its intended value on 16 April. According to a Paxos spokesperson, this depegging was caused by problems with pricing aggregators, not the Pax Dollar protocol itself.
Data from CoinMarketCap showed USDP's price spiked to $1.29 before returning to $1 within a few hours. A Paxos spokesperson explained that pricing aggregators gather data from various trading venues.
In this instance, sudden price increases on some platforms impacted the aggregated USDP price. Paxos emphasized that they have no control over external market activity.
More details - The depegging coincided with a temporary rise in USDP's market capitalization. When the price hit $1.29, the market cap jumped from $140 million to $181 million. This value returned to $140 million as USDP regained its 1:1 peg to the dollar.
Despite this short-lived fluctuation, Paxos assurec users that USDP remains redeemable for $1 at any time. The spokesperson clarified, "Paxos always values USDP at $1, and customers can always create and redeem USDP from Paxos for $1."
More stories from the crypto ecosystem
Interesting facts
Unlike traditional currencies, Bitcoin has a finite supply of 21 million coins that will ever be mined. This scarcity is a key factor in its perceived value.
Blockchain technology, the underlying technology behind crypto, is finding applications in various industries like supply chain management and voting systems.
Memecoins, like Dogecoin and Shiba Inu, have shown that social media hype and community can significantly influence crypto prices.
Top 3 coins of the day
Solana (SOL)
Key points:
Solana’s price falls further as Ore suspends mining on the network.
The mining halt is only temporary, as Ore hopes to bring its PoW concept back to Solana under more favourable conditions.
What you should know - Solana is facing mixed signals. On the 1-day chart, the price bounced off a support level around $116, but it's still down roughly 19% over the last week. There's no clear upward trend yet. Investors are watching for buying pressure to push SOL above resistance near $180. If that happens, it could signal a potential short-term price increase. However, if SOL falls below $123, it could indicate continued bearish pressure. Traders should keep an eye on trading volume and geopolitical news for additional clues about Solana's next move.
Dogecoin (DOGE)
Key points:
Dogecoin was the only leading meme coin to register gains in the last month.
DOGE’s price climbed by 4.43% during the last 30 days.
What you should know - Dogecoin faced a potential downturn as bears tightened their grip. After a recent flicker of hope with the MACD indicator's bullish crossover on 26 March, the price has fallen gradually. DOGE has struggled to gain momentum, this weakness suggests that the underlying bearish pressure remains strong. Furthermore, a closer look at the MACD histogram reveals a concerning trend - The bars are rising, indicating ongoing strong selling momentum. Traders should therefore be aware of the $0.117 support level that DOGE might reach soon.
Litecoin (LTC)
Key points:
At press time, LTC was trading at $81.92 with sellers in the fore.
It had fallen by 14.90% over the last seven days.
What you should know - LTC has noted a massive decline in the past few days, thanks to the unprecedented selling pressure. If LTC can break above $100 convincingly, it could signal a short-term upswing. However, a drop below $70 could suggest continued weakness. Trading volume has also been falling - It is another key factor to watch. Higher volume alongside a breakout above resistance would strengthen the bullish case. Conversely, lower volume with a price dip could indicate more selling pressure.
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