Record-Breaking 50 Trillion Shiba Inu (SHIB) in 24 Hours: What Just Happened?

Shiba Inu's transactional activity went through the roof as around 50 trillion Shiba Inu were transacted out of the blue, pushing the network to its limits. The unexpected surge was most likely tied to the WazirX exchange hack that led to the loss of trillions of SHIB tokens that have already reached the market.

As of the most recent update, WazirX's assets, which included 5.43 trillion SHIB, 15,298 ETH, 20.5 million MATIC, 640. billion PEPE, 5.79 million USDT and 135 million GALA, valued at somewhere around $230 million.

All 5.43 trillion SHIB were swiftly liquidated by the hacker for 26,535 ETH, or roughly $92 million. Remarkably, market makers such as Wintermute stepped in and bought SHIB from decentralized exchanges (DEX) to then deposit it to centralized exchanges in order to profit from arbitrage. This move contributed to the stabilization of SHIB's price decline, giving the impression that the absorption of liquidity was proceeding normally.

Related

Fri, 07/19/2024 - 09:59

Ripple CTO Shares Crucial XRP Ledger Upgrade Alert

Gamza Khanzadaev

Even though SHIB was sold for a substantial amount, the asset's price was able to smoothly absorb the liquidity. Given that the market did not undergo a catastrophic collapse this is encouraging news.

Because of the support from market makers and the general dynamics of the market, SHIB was able to withstand this situation. We can observe from the provided chart analysis that SHIB had a notable volume spike, which was indicative of the large number of transactions.

Prior to the successful absorption of selling pressure, some whales most likely started actively redistributing their funds, getting ready for a catastrophic drop. However, as soon as the news about the liquidation of hackers' funds dropped, it became clear that there is no reason to panic and trigger a sell-off.