[Transaction volume exceeds 1.4 trillion SHIB in 24 hours, what happened to Shiba Inu Coin? 】
Recent on-chain dynamics for Shiba Inu Coin (SHIB) have shown extreme volatility: after more than 50 trillion SHIB were traded a few days ago, trading volume has quickly fallen back to 1.4 trillion SHIB recently.
The massive trade was largely attributed to a hack on the WazirX exchange, which resulted in a large amount of SHIB being dumped onto the market, which could have had a negative impact on its price. However, the impact on the market was limited due to the intervention of market makers such as Wintermute, who purchased SHIB from decentralized exchanges and deposited them into centralized exchanges for arbitrage trading.
Volume dropped sharply to 1.4 trillion SHIB, indicating that the initial sell-off and panic had eased. This suggests that SHIB whales or large holders who may have been responsible for the massive sell-off have either completed their trades or temporarily delayed a larger move.
Despite initial fears that SHIB’s price would fall significantly, it was able to hold near support at $0.00001778, showing the strength of the market’s support and suggesting that the market absorbed excess liquidity without experiencing a major correction.
Trading activity data shows a significant decline in the number of large transactions, consistent with a downward trend in overall transaction volume. This trend is likely to continue as markets stabilize and investor confidence returns. To prevent further volatility, it will be crucial for SHIB to maintain current support levels.
