• Sun. Apr 21st, 2024

As This On-Chain Metric Explodes, the Shiba Inu-Based Bone Is Aiming for $1

Phillip Bryant

ByPhillip Bryant

Nov 9, 2023

The BONE token operates within the Shiba Inu ecosystem and has experienced a relatively uneventful month of positive price fluctuations. The Shiba Inu ecosystem is presently observing a notable surge in on-chain transactions, with BONE being no exception.

There has been an observed increase in the holdings of certain SHIB whales, which can be attributed to their anticipation of an upcoming milestone about Shibarium. Simultaneously, BONE experienced a notable surge in substantial transactions, indicating a potential readiness for significant price appreciation, as noted in this crucial on-chain metric.

The Number of Very Large Transactions Has Increased

The recent surge in the daily transaction volume of BONE, the governance token of ShibaSwap, has witnessed a significant escalation over the previous week. Based on current data derived from IntoTheBlock’s comprehensive analysis of large transactions, specifically those exceeding a valuation of $100,000, a notable surge in activity has been observed.

This surge, which was previously absent towards the conclusion of October, has resulted in a substantial increase, with the number of BONE tokens transacted exceeding 5.17 million units during the weekend. The observed magnitude of transactional activity can potentially indicate the influx or outflow of substantial financial resources about a given asset. However, the former scenario tends to be the prevailing circumstance in most instances.

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Simultaneously, prominent stakeholders of BONE have been accumulating substantial quantities of the asset. According to on-chain data analysis, it has been observed that wallets belonging to large-scale investors, commonly referred to as whale wallets due to their significant holdings (constituting more than 1% of the total supply), currently account for 44.03% of the total supply. This figure represents a marginal increase from the previously reported percentage of 43.41% recorded last month.

The wallets of investors with holdings ranging from 0.1% to 1% of the circulating supply have experienced an increase, currently accounting for 16.85% of the total. The observed inflows into the sets above addresses exhibited a notable surge of +295% within seven days, thereby signifying a discernible level of interest from entities commonly referred to as whales.

A Turnaround in Bearish Sentiment? Path to one dollar?

The observed substantial surge in transaction volume indicates a notable upswing in the adoption and attention received by BONE, particularly from high-volume investors. However, the presence of on-chain data and the price fluctuations of BONE can be viewed as a dual-edged phenomenon.

Even though there has been a noticeable increase in the amount of money in large wallets and the number of significant transactions, broader on-chain metrics show that retail traders generally feel negative.

A decline in engagement from individual investors over the previous month notably characterizes the observed phenomenon. As of now, the trading value of BONE stands at $0.71, reflecting a decline of 64% from its peak of $2.20 earlier this year in February.

However, it is worth noting that BONE has experienced a notable increase of 3.6% within the previous three-hour timeframe after a recent rebound from a significant support level situated at $0.69. There is a marked upward trend in on-chain transactions observed among bullish market participants and prominent investors, which has the potential to propel the cryptocurrency’s value to reach $1 once again.

BONE has been the unit for gas fees on the Shibarium layer-2 blockchain, and its total gas consumption has increased since the beginning. The Shibarium platform is on the verge of reaching a significant milestone of four million transactions. This achievement can positively impact BONE’s valuation, driving its value closer to the $1 mark.

Phillip Bryant

Phillip Bryant

Phillip Bryant, an esteemed writer in the financial field, imparts his extensive knowledge of currency markets to the readers of Main Crypto News. With a wealth of experience in international finance and a keen sense of market trends, Bryant offers timely and perceptive analysis of foreign exchange, keeping readers well-informed.

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