Shiba Inu-Based BONE Eyes $1 As This On-Chain Metric Explodes
November 06 2023 - 3:00PM
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BONE, a token based on the Shiba Inu ecosystem, has had quite a
dull month in terms of bullish price movement. However, the Shiba
Inu ecosystem is currently experiencing an increase in on-chain
transactions, and BONE hasn’t been left out. Some SHIB whales
have increased their holdings in anticipation of a new milestone
for Shibarium. At the same time, BONE also had an increase in large
transactions, and this key on-chain metric suggests the token could
be ready for a major price appreciation. BONE Large Transaction
Volume Increases The daily large transaction volume for BONE,
ShibaSwap’s governance token, has exploded in the past week.
According to recent data from IntoTheBlock’s metric of large
transactions, each valued at $100,000 or more, spiked from no
activity at the end of October to more than 5.17 million BONE
tokens over the weekend. This type of large transaction activity
can either mean that big money is flowing into or leaving an asset.
But more often than not, the former is the case. Related Reading:
Bitcoin And Ethereum Rally Not Over: Crypto Capital Inflows Reach
One-Year High At the same time, BONE’s biggest whales have been
loading up their bags. On-chain data shows whale wallets (more than
1% of the total supply) now hold 44.03%, up from 43.41% reported
last month. Investors’ wallets holding between 0.1% and 1% of the
circulating supply also went up, now holding 16.85%. Inflows into
these two sets of addresses increased by +295% in a 7-day
timeframe, indicating interest from whales. Source: IntoTheBlock
Bearish Sentiment Reversal? Road to $1? With the large transaction
increase, it’s clear BONE is gaining major traction and interest
from whales. But some on-chain and BONE’s price points to a
double-edged sword. Despite the inflow into large wallets and
increase in large transactions, broader on-chain signals point to
bearish sentiment from retail traders. Related Reading: Shiba
Inu Whales Bet Big As Shibarium Grows – Road To $0.1? This is
particularly evident as interest from small investors has dropped
in the past month. At the time of writing, BONE is trading at $0.71
and is down by 64% from its yearly high of $2.20 in February. Bulls
push token price toward $1 | Source: BONEUSDT on Tradingview.com On
the other hand, BONE has spiked by 3.6% in the past three hours
after recently bouncing off major support at $0.69. A continued
surge in on-chain transactions among bulls and whale investors
could push the crypto back up to $1. BONE is used as gas fees on
the Shibarium layer-2 blockchain, which has had a steady increase
in cumulative gas usage since its launch. Shibarium is now
approaching the four million total transactions milestone, which
could also push BONE towards $1. Source: IntoTheBlock Featured
image from CoinMarketCap, chart from Tradingview.com
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