Shiba Inu Holders and the Value of BONE
News of a drop in the US Consumer Price Index to one-year lows rubbed off nicely on the cryptocurrency market, as holders of Bitcoin, Shiba Inu, and several other crypto assets enjoyed some nice gains.
Shiba Inu holders must be heaving a sigh of relief. Having spent the latter part of 2021 and 2022 dipping their fingers in cold water after having them badly burnt, they are enjoying some handy comfort from the recent price appreciation. Even though Shiba Inu is nowhere near its 2021 highs, the recent march from 0.00000790 to 0.00001090 (a 30% appreciation in January 2023) may have brought some value for Shiba token owners who decided to load up as soon as the crypto asset retested the lows of June 2022.
Why are holders excited?
Several developments have emerged in the Shiba ecosystem in recent times. The SHIB team has presented the basic concepts behind Shibarium, the Layer 2 blockchain of the SHIB ecosystem.
One of the takeaways from the release is the new ability granted to users and Shiba Inu holders to access Shibarium's test tokens through private test networks.
This is in addition to removing one zero from its price (some of us were starting to lose count). There is also some buzz around a rumoured 2023 launch for the long-awaited SHIB Metaverse.
The listing of the Shiba token on the StealthEX crypto exchange also created some market buzz. StealthEX is a mobile app that provides non-custodial exchange and swap facilities for the three tokens that make up the Shiba Inu ecosystem.
Speaking of the Shiba ecosystem tokens, one of them is already attracting huge interest. The BONE token, which will power all transactions on Shibarium's Layer 2 protocol, is experiencing a resurgence.
After hitting exchanges at $0.4 in June 2022, it reached its all-time high of $2.39 on 30 August 2022 before hitting Q4 2022 lows at $0.60. Since the 22 November 2022 lows, the price of this Shibarium token has more than doubled. This has positively impacted the number of addresses holding Shiba Inu, growing from 1,280K on 11 January to 1,283K on 17 January. The largest Shiba token owner owns 41.03% of the total supply, according to data from Coinmarketcap.com. The next top holder is a distant second, holding just 5.59% of the total supply.
Is BONE bringing value?
It isn't easy to quantify this. Undoubtedly, the Shiba Inu token has drawn some inspiration for its one-week performance from the BONE token's rise. However, it is too early to say if this correlation will endure or eventually break down. For now, Shiba Inu token holders may only care a little as long as the token keeps heading in the right direction.
Author: Eno Eteng
Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about cryptos, FX and CFDs. Since 2009, he has been a consultant for several companies in the financial market space. His work can be seen on several forex and crypto-related blogs and trading educational websites.