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Here’s Shiba Inu New Adoption Rate at Current Price of $0.000023

Sam Wisdom Raphael
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Here’s Shiba Inu New Adoption Rate at Current Price of $0.000023

Shiba Inu witnesses a fairly high new adoption rate despite the ongoing market uncertainty that has restrained its price to the $0.000023 level.

With the broader market facing a roadblock to the latest breakout attempt, Shiba Inu failed to breach the resistance at the 20-day EMA ($0.00002453). Such a breach would have helped flip short-term momentum from bearish to bullish, effectively bolstering investor confidence.

Shiba Inu’s New Adoption Rate Remains High

Interestingly, market participants have continued to troop into the Shiba Inu market despite the prevalent short-term bearish momentum. This trend is demonstrated in full scope by the New Adoption Rate metric provided by blockchain intelligence resource IntoTheBlock (ITB).

The New Adoption Rate metric starts by pinpointing all the active Shiba Inu addresses involved in transactions on a particular day. It then calculates the percentage of new addresses among this group that are carrying out their first transactions within that same timeframe.

A high rate suggests that Shiba Inu is witnessing an influx of new market participants. On-chain data confirms that this metric has remained above 30% since April 22 despite the persistent turbulence that has plagued the Shiba Inu market.

The New Adoption Rate maintained a position above 30% from January of this year as SHIB showed signs of a push above $0.00001 at the time. However, the metric collapsed to the yearly bottom of 21.04% on Feb. 27, right before SHIB recorded the meteoric surge that saw it spike 372% to $0.000045 on March 5.

Shiba Inu New Adoption Rate ITB
Shiba Inu New Adoption Rate | ITB

Interestingly, the indicator immediately picked up, suggesting an influx of new investors looking to ride on the late February rally. Since then, it has maintained an average of 35% as new market participants enter the scene, possibly to procure more tokens at discounted prices.

Gradual Rise in Small SHIB Addresses

Supporting this notion is the gradual increase in the number of small Shiba Inu addresses. Santiment confirms that addresses holding between 10 and 10 million Shiba Inu tokens have seen an impressive increase since March 5, the day Shiba Inu clinched $0.000045.

This trend suggests a renewal of confidence among investors, as SHIB demonstrated its ability to record massive surges. Notably, Shiba Inu has seen an addition of 24,076 addresses holding between 10 and 1 million tokens. Those with 1 million to 10 million tokens have surged by 14,140 since March 5 despite a drop on April 20.

SHIB Addresses Santiment
SHIB Addresses | Santiment

Moreover, the Address Birth-Death Ratio from ITB also confirms that Shiba Inu has been seeing an increase in new users compared to old users who have not transacted for over a year. This metric hovered between 0.1% and 0.06% from January to February. However, it increased to a two-year high of 1.15% on March 5. 

Shiba Inu Address Birth Death Ratio ITB
Shiba Inu Address Birth Death Ratio | ITB

Since then, it has averaged at 0.15% following a sharp drop on March 6, suggesting a healthy inflow of new users. Meanwhile, Shiba Inu is currently changing hands at $0.00002377 amid a 0.50% drop this morning. Nonetheless, it retains a 6.16% increase this month.

Expert Predicts Timeline for XRP to Hit $20

Abdulkarim Abdulwahab
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Expert Predicts Timeline for XRP to Hit $20

Armando Pantoja, a Benzinga crypto advisory board member, has issued a timeline for when XRP may advance by 3,626% to trade at $20.

XRP has invalidated most of the proceeds it accrued within the last 24 hours, with its market value at $0.5367. The asset briefly hit $0.5689 yesterday, one of its highest values in two weeks. However, it has since corrected most of the gains, bringing its cumulative performance below 1% since the last day.

Moreover, at its current price, XRP still retains a 10% loss from the value it sold a month ago. Despite the underwhelming performances, market analysts remain confident that XRP could secure significant gains to become a two-digit valued asset potentially.

Timeline for XRP to Hit $20

Early today, Pantoja expressed his optimism about XRP’s future and suggested a timeline for when it could attain values between $8 and $20. According to him, XRP’s “true value” is within the $8 to $20 range. He believes XRP will claim this true value range by 2026.

Moreover, Pantoja revealed that his XRP investment counts as “the easiest trade” of his life. He went on to highlight a few factors that influenced his optimistic target for XRP.

Factors That May Influence XRP $20

The leading element is XRP’s six-year history. In particular, XRP expanded by 750-fold in less than 52 weeks in the 2017/2018 cycle. However, XRP has been in a downward spiral ever since. Essentially, the industry commentator believes XRP could repeat history, a view many other analysts have shared.

Furthermore, Pantoja drew on XRP’s anticipated institutional adoption, the resolution of Ripple’s lawsuit, and the increased partnership that may follow. These factors are expected to enhance XRP’s appeal, boost interest, and subsequently bolster price action.

XRP Growing 3,636% by 2026

XRP selling for $0.5367 implies it must grow by at least 3,636% in the next two years to hit the projected $20 target. Essentially, this Bitcoin commentator, like many others, is confident that XRP will crack the double-digit range in the coming years. 

However, in recent times, XRP has not proven capable of staging the widely projected bullish performance. For instance, it has not reclaimed the $1 price level for nearly three years, consistently trading about 50% below $1 over the years. 

Moreover, XRP last established an all-time high six years ago. Some crypto market participants remain skeptical about XRP reclaiming $3.84 this season, especially as it has displayed a barely commendable trajectory in the last seven months that marked the initial phases of this bull season. However, this has not impacted the confidence of others.

As SEC Files New Motion, Expert Sets Date for Ripple Lawsuit Final Verdict or Settlement

Lele Jima
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As SEC Files New Motion, Expert Sets Date for Ripple Lawsuit Final Verdict or Settlement

The United States Securities and Exchange Commission (SEC) has filed its final remedies-related reply brief and supporting exhibits in the Ripple lawsuit.

Popular defense lawyer James Filan shared the development on X yesterday, stating that the motions are still sealed.

According to Filan, the SEC’s filing will remain sealed until May 8, when a redacted version will be filed publicly.

Notably, the SEC’s and Ripple’s lawyers will meet and confer today, May 7, to identify necessary redactions before the documents are unsealed.

Possible Arguments in SEC’s Reply Brief

Although the SEC’s reply remains sealed at press time, legal commentators expect the documents to counter Ripple’s arguments in opposition to the regulator’s opening remedies brief.

Recall that the SEC asked the court to impose a nearly $2 billion fine against Ripple for violating federal securities laws via its institutional sales of XRP. This came up after Judge Analisa Torres’ ruled last July that the San Francisco-based firm contravened securities laws by selling XRP to institutions in the past.

In its opening remedies brief, the SEC also contended that an injunction be leveled against Ripple to prevent it from future violations. As reported earlier, Ripple opposed the SEC’s demands, stating that both an injunction and disgorgement are unwarranted.

The crypto payments company argued that the SEC failed to illustrate the necessity for an injunction or disgorgement. Furthermore, Ripple noted that the civil penalty should not exceed $10 million instead of the $876 million the SEC seeks.

Notably, the SEC is expected to counter Ripple’s arguments, explaining why the court should grant its request over Ripple’s.

Experts Project Timeline for Final Resolution

Meanwhile, the SEC’s reply brief has elicited reactions among XRP enthusiasts, with industry commentators projecting the potential timeline for a final resolution of the lawsuit.

Outspoken XRP community figure Ashley Prosper projected that Judge Analisa Torres would issue her final verdict between July and September 2024. Interestingly, he pointed out that the parties could reach an agreement and settle before the final verdict is issued.

Prosper expressed determination to endure through the process, irrespective of the final resolution’s path.

 

It is worth mentioning that the timeline is mere speculation, and there is no guarantee that the judge will issue the final verdict between July and September 2024.

Will SEC Appeal?

The prediction comes a few days after Prosper speculated that he expects one of the parties to appeal the ruling.

If this happens, the SEC v. Ripple case could linger beyond 2025. The SEC had already attempted to appeal the summary judgment decision, which gave Ripple a partial victory.

However, Judge Torres thwarted this move, ordering the regulatory agency to wait until all pending issues were resolved. Should the court issue a final verdict within Prosper’s timeline, the SEC could continue its bid to overturn Ripple’s victory in the Second Circuit.

The regulator could also accept the final verdict and not appeal if the ruling goes in its favor.

Expert Predicts Explosive XRP Rally as RSI Eyes Breakout

Sam Wisdom Raphael
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Expert Predicts Explosive XRP Rally as RSI Eyes Breakout

Notable economist and Bitcoin analyst Mikybull expects XRP to stage a rally following an imminent breakout of a pivotal resistance level on the monthly RSI.

XRP has been trading within a symmetrical triangle on the monthly timeframe since it dropped from the $1.96 high in April 2021. Amid this triangle, XRP has continued to record lower highs and higher lows, essentially impacting its monthly relative strength index (RSI).

Due to this, XRP’s monthly RSI has continued to slope down, witnessing a prevalent downtrend since April 2021. Citing historical data, Mikybull believes the downtrend impacting the monthly RSI needs to break before XRP can witness an upward price push.

XRP 1M Chart
XRP 1M Chart

Notably, this pattern played out from 2014 to 2017, when XRP faced a similar downward pressure. XRP slumped from the $0.028 high in December 2014 and traded between $0.007 and $0.004 from that month till February 2017. During this downward pressure, the RSI also faced a downtrend. 

However, XRP breached the downward trendline when the RSI broke above the resistance level in February 2017. This event led to XRP’s monumental rally, culminating in the all-time high of $3.31 in January 2018. 

Trends Suggesting an Imminent Breakout

Mikybull expects the same pattern to play out, suggesting that the RSI will soon break out. A positive trend bolstering his optimism is the series of retests engineered by XRP on the lower trendline. The analyst’s chart reveals that from 2014 to 2017, XRP retested the trendline thrice before the breakout. 

Now, it has also carried out these three retests within this phase. The first retest occurred in December 2020 when XRP dropped to $0.17, the second retest came up in January 2023 amid a slump to $0.3, and the third one occurred last month as XRP retraced to the $0.42 low on April 13.

Another positive trend suggesting an imminent breakout is a resurgence of whale accumulation. XRP whales have taken to amassing more tokens since March. Per Santiment data, addresses holding between 1 million and 100 million XRP and those holding at least 1 billion XRP have continued to increase their holdings.

XRP Whale Accumulation
XRP Whale Accumulation | Santiment

The wallets with balances between 1 million and 100 million have amassed 600 million XRP since March 4. This accumulation trend has brought their cumulative balance to 10.39 billion XRP at the last check. Those holding 1 billion XRP and more have procured 290 million XRP since March 11, now holding 23.68 billion tokens.

Multiple XRP Targets Eye $3.84 to $200

Meanwhile, despite his confidence in an imminent rally, Mikybull failed to present any price targets for XRP. Nonetheless, multiple market watchers who expect a similar upsurge have projected several price targets. Analyst EGRAG recently asserted that XRP could secure a new cycle top above $3.84 in September.

In addition, Javon Marks has been consistently predicting a looming price rally that could take XRP to an ambitious $200 price. Last month, Abdullah Nassif, host of The Good Morning Crypto show, projected that the recent tightening of the Bollinger Bands on the monthly timeframe could take XRP anywhere between $13 and $17. 

Solana Price Forecast: This $260M Signal Could Drive SOL to $200 in May 2024

Mark Brennan
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Solana Price Forecast: This $260M Signal Could Drive SOL to $200 in May 2024

Solana’s price reclaimed the $155 territory on Monday, May 6, bringing its monthly timeframe gains above the 25% mark. Critical market indicators suggest SOL profits ahead in May 2024.

Solana Price Surges 31% in 6 Days

The global crypto market has been on an upward trajectory in May 2024, and as expected, Solana and other mega-cap crypto assets like BTC and ETH have been at the forefront of the rally.

Solana SOL Price Action in May 2024
Solana SOL Price Action in May 2024

Solana price is trading around $155 at the time of writing, reflecting a 31.9% surge within the first 6 days of May 2024.

The ongoing crypto market recovery has been largely attributed to positive headwinds from recent US macroeconomic indices reports. However, Solana derivates market data reveals a unique bullish catalyst that could propel SOL’s price further upward in the days ahead.

Solana Open Interest Has Increased $260M.

Recent trends observed in the Solana derivatives markets suggest that investors are now growing increasing confident and making big bets that the 31% SOL price surge will advance further.

Coinalyze’s Open Interest metric tracks the dollar value of active perpetual futures contracts listed for a specific crypto asset. It serves as a tool for gauging investors’  participation rate and the overall direction of their trading sentiment.

Solana SOL Open Interest
Solana SOL Open Interest

The chart above shows how SOL Open Interest has increased by $260 million since the start of May 2024.

Typically, such a significant spike in open interest during a price uptrend signals that the majority of Solana speculative traders are confident of further gains and piling on new positions to amplify their potential profits.

More so, while the price of Solana increased by 31.9% in May 2024, this $260 million increase in Open Interest represents only a 19% growth. With the price growth far outpacing the open interest surge, it suggests that the SOL rally is driven more by organic demand in the spot markets than speculative activity.

This bullish market alignment puts SOL in a position to maintain relatively high support levels in the event of a price correction phase in the days ahead.

SOL Price Forecast: Rocky Road to $200?

Solana’s price is currently trading at $155. However, drawing insights from the $260 million capital inflows recorded in the first 6 days of May 2024, most investors are advancing further upswing towards $200 in the days ahead.

However, the key resistance clusters highlighted by the Bollinger band indicators show that reaching $200 will not be a cakewalk for the bulls.

 

SOLUSD 2024 05 06 13 37 40
Solana SOL Price Forecast

As seen below, Solana now faces a major sell-wall at the $158.27 territory. If the bull can stage a decisive breakout above that range, a $200 retest could be on the cards as predicted.

But if the bears attempt to force another correction phase, bulls can find a formidable short-term support cluster at the $143 20-day SMA price level.

It is also important to note that Solana’s price action has been positively correlated with memecoin markets in recent months. And with the likes of Dogwifhat (WIF), Shiba Inu (SHIB), and Dogecoin (DOGE) racing up the top gainer’s charts last week, if the meme sector rally persists, historical data suggests it could enhance the chances of SOL price reaching $200 in May 2024.

User Discloses Profit by Holding Shiba Inu Rather than Cash in Bank

Abdulkarim Abdulwahab
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User Discloses Profit by Holding Shiba Inu Rather than Cash in Bank

Data shows the most resilient Shiba Inu holders command an astonishing ROI of 1,865,428% today compared to risk-averse savings account holders.

Shiba Inu remains a widely followed cryptocurrency, with its holders numbering in the millions—surpassing the population of over 105 cities in the United States separately. SHIB gained prominence amid its meme-inspired origin, generating significant profits for hold.

However, during market downturns, meme cryptocurrencies such as Shiba Inu tend to experience sharper declines than other crypto asset classes. For instance, the seventh largest crypto XRP crashed 10% from $0.53 to $0.48 between April 21 and May 1. During the same time, Shiba Inu collapsed by 26.22%.

This raises the question of whether investing in tokens like Shiba Inu, or in cryptocurrencies in general, is advisable compared to the more conservative strategy of depositing money in a bank to accrue interest, which carries lower risks of capital depletion.

Shiba Inu Investment Compared to Bank

Business Insider’s latest findings indicate that the typical annual percentage yield (APY) of standard U.S. savings accounts varies between 0.01% and 0.3%. Digital banking platforms such as Bask Bank and UFB Direct provide more substantial APYs as high as 5.25%.

Still, these rates are modest compared to the returns from holding Shiba Inu over the previous year. An individual who bought into Shiba Inu precisely one year ago for $0.000009379 would now see an impressive gain of 158%, with the asset’s current value at $0.00002509.

Meanwhile, the investment experienced significant volatility throughout the year, including a drop of over 30% when the price fell to $0.000006555.

Conversely, the investment also surged over 400% at its peak when SHIB reached $0.000045. Overall, at its current value, Shiba Inu holders retain more than double their investment a year later. Remarkably, the profit from holding Shiba Inu widens the more an individual holds on to the asset.

An investor with 340% ROI after 783 Days of Holding SHIB

A pseudonymous X user recently highlighted that he held Shiba Inu for 783 days, approximately two years and 50 days. Technically, this individual entered the SHIB market during the bear season, yet he disclosed a return of approximately 340%.

He emphasized that if he had saved the funds in the bank, his profit would have been 5%, overlooking the effects of inflation.

Longest Holders with 1,865,428% Gains

Interestingly, according to CoinMarketCap data, investors who have never liquidated their Shiba Inu investments since their first acquisition in 2020 will command a staggering ROI of 1,865,428% today. This implies that even a $100 invested in Shiba Inu four years ago now amounts to nearly $2 million.

Here’s How Many Shiba Inu Stand in the Way of SHIB Reaching $0.000056

Sam Wisdom Raphael
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Here’s How Many Shiba Inu Stand in the Way of SHIB Reaching $0.000056

Shiba Inu has the potential to surpass the $0.000056 price territory if it can breach four supply walls with a combined volume of over 78 trillion SHIB tokens.

With the broader market looking to recover fully from the losses incurred last month, Bitcoin (BTC) and other crypto assets have set the stage for substantial price rallies. Shiba Inu, which lost 27.16% of its value in April, has increased by 7.15% this month, looking to reach significant price levels.

SHIB’s immediate goal is to eventually surpass the yearly peak of $0.000045, with a subsequent push toward the $0.00005 price territory. However, on-chain data sourced by IntoTheBlock suggests that it might face a cluster of roadblocks on the journey toward $0.00005.

Shiba Inu Faces 4 Sell Walls Below $0.00005

Notably, IntoTheBlock’s Global In/Out Money (GIOM) metric indicates that Shiba Inu faces minimal resistance below the $0.000026 price. According to market data, SHIB’s next pivotal resistance currently sits at the Fibonacci 0.5 retracement level, aligning with $0.00002721.

However, once it breaches the $0.000026 level, SHIB would face three sell walls before reclaiming $0.000045 and an extra sell wall before reaching a new yearly high above $0.00005. The first sell wall rests between the $0.000026 and $0.00003 price, where 115,790 addresses hold 56.37 trillion SHIB.

Shiba Inu GIOM IntoTheBlock
Shiba Inu GIOM | IntoTheBlock

Shiba Inu has continued to face a roadblock in the $0.00003 region since last month. The second sell wall lies within an average price of $0.000033. At this level, about 140,830 wallets procured 21.06 trillion SHIB in a price range of $0.000030 and $0.000036. 

At the second sell wall is a cluster of 57,960 addresses, which amassed 8.44 trillion SHIB at a maximum price of $0.000045. Breaching this level would bring Shiba Inu to the yearly peak of $0.00004567, previously attained on March 5 amid the uptrend that began in late February.

However, for SHIB to surpass the $0.000045 high and establish a new top, it would need to break above the sell wall between $0.000045 and $0.000056 price levels, where 62,510 addresses hold 3.32 trillion SHIB. Overall, these four supply walls posing resistance on the path to $0.000056 collectively feature 78 trillion SHIB tokens.

Current Market Sentiments

At the current price of $0.00002428, Shiba Inu would need to surge 130% to reach $0.000056. This potential was already demonstrated during the late February uptrend, which saw SHIB increase 372% within eight days. While replicating this rise is possible, the bulls would require strength from a shift in sentiments.

Shiba Inu 1D Chart 9
Shiba Inu 1D Chart

Currently, Shiba Inu’s sentiments are flirting with the bearish territory, with the Long/Short Ratio on derivatives positions currently at 0.845. However, investors have begun pulling their SHIB tokens off exchanges, transferring out $5.54 million since yesterday, as prices look to recover.

Hong Kong Spot Crypto ETFs See $7M Volume on May 6, 243x Less Than US Volume at $1.8B

Sam Wisdom Raphael
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Hong Kong Spot Crypto ETFs See $7M Volume on May 6, 243x Less Than US Volume at $1.8B

Hong Kong spot crypto ETFs witnessed a meager $7.7 million volume on May 6, way less than the $1.88 billion volume recorded by their U.S. counterparts the previous trading day.

The Hong Kong spot Bitcoin and Ethereum ETF market is recording a slow day at the office, with their discouraging performance further exacerbated by the prevalent turbulence in the Bitcoin (BTC) and broader crypto market. Following their launch, the six spot crypto ETFs have not met expectations from asset managers.

Notably, Chinese blockchain reporter Colin Wu disclosed in a report today that all the six products witnessed a discouraging trade volume of $7.72 million on May 6. While this figure could be deemed fair, they trail when compared with the $1.87 billion recorded by the 11 spot Bitcoin ETFs in the U.S. on May 3, last Friday.

With trading data not yet released for the start of the new week, information on the volume of the spot Bitcoin ETFs in the United States for May 6 is not public knowledge yet. However, these products have not recorded anything less than half a billion dollars in 24-hour volume.

Notably, the lowest volume witnessed by the U.S.-based spot Bitcoin ETFs was $643.75 million on Feb. 5, three weeks after their debut. Meanwhile, their largest 24-hour trade volume came up on March 5, when these products saw $9.93 billion in volume, according to market data sourced by The Block.

A Discouraging Start for Hong Kong Spot Crypto ETFs

For context, Hong Kong welcomed six spot crypto ETFs on April 30, with three of these being spot Bitcoin ETFs. This move came up two weeks after the region’s regulatory agency gave a conditional approval for its first spot Bitcoin and Ethereum ETFs. 

Right before their debut on April 30, expectations were on the high side, with Zhu Haokang, a divisional head at ChinaAMC, one of the ETF issuers, arguing that the spot Bitcoin and Ethereum ETFs in Hong Kong would surpass the trading volume of the U.S.-based products on their debut.

Upon launch, these products only witnessed $112 million in trading volume. For context, the spot Bitcoin ETFs in the U.S. recorded a volume of $4.54 billion on their debut on Jan. 11. Since the launch, the Hong Kong-based products have continued to see declining trade volume, with the recent $7.72 million volume marking a 93% drop from the debut figure.

Dogecoin Surges by 29% Amid Reports of Tesla Accepting DOGE Payment

Abdulkarim Abdulwahab
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Dogecoin Surges by 29% Amid Reports of Tesla Accepting DOGE Payment

Dogecoin soared recently by 29% amid renewed reports that the Elon Musk-led electric vehicle manufacturer Tesla incorporated DOGE as a payment instrument.

Over the weekends, crypto market participants observed that Tesla’s payment section had been revised to feature Dogecoin.

Indeed, DOGE is a tenable asset for some products listed on the Tesla. However, it does not include eclectic cars. In particular, the company permits the use of DOGE exclusively for purchasing merchandise through its online store, Tesla Shop.

Dogecoin Takes Impact

After this update resurfaced in the crypto community, Dogecoin’s market value dramatically increased. In particular, Dogecoin, which traded at a low of $0.1314 on Friday, soared by 28.69% within 24 hours, clocking $0.1691.

Meanwhile, there is skepticism surrounding the supposed “news” around Tesla adding Dogecoin as a payment method. They pointed out that Elon Musk’s firm has been known to support Dogecoin payments for years already.

Dogecoin Payment Supported since 2022

Notably, on December 14, 2021, Elon Musk revealed that Tesla would experiment with accepting Dogecoin in exchange for merchandise. A month later, Musk confirmed incorporating Dogecoin as a payment method for Tesla Shop. 

Elon Musk Dogecoin Payment annocements
Elon Musk Tesla Dogecoin Payment Announcements

The move came after Tesla discontinued Bitcoin payment for its goods, citing environmental concerns. Shortly before the Dogecoin endorsement, Musk, in an interview, praised the meme coin over Bitcoin, saying it is better suited for transactions. 

Specifically, Musk highlighted that the Dogecoin network permits higher transaction counts and charges lower fees for transfers compared to Bitcoin.

A few months after Tesla Shop welcomed Dogecoin payment, SpaceX, another company led by Elon Musk, began accepting the meme coin. Essentially, Dogecoin has long been a supported payment instrument for goods Elon Musk’s companies produce, save for electric cars.

When Support for Electric Cars 

Meanwhile, in March 2024, while visiting the Giga Berlin factory, attendees questioned Musk about the possibility of Tesla accepting Dogecoin for electric vehicle purchases. Musk replied that they would consider incorporating Dogecoin as a payment method at some point down the line.

Why Elon Musk Continues to Support Dogecoin

Meanwhile, Musk revealed a compelling rationale for his ongoing endorsement of Dogecoin. He disclosed that he had received numerous appeals from his employees to back DOGE.

While observing Bitcoin as overly the crypto asset of the rich, the repeated mention of Dogecoin painted it as the cryptocurrency of the people. As a result, he opted to endorse it for his business while partially parting ways with Bitcoin. 

BitMex Founder Hayes Invests Heavily in Pendle Amid Bullish Sentiments on Derivative DEXs

Albert Brown
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BitMex Founder Hayes Invests Heavily in Pendle Amid Bullish Sentiments on Derivative DEXs

BitMEX founder Arthur Hayes increases his Pendle holdings through Wintermute trades, signaling confidence in the token’s future.

Arthur Hayes, the founder of BitMEX, has been actively increasing his holdings of Pendle, an ERC-20 token associated with the decentralized finance (DeFi) protocol of the same name.

According to recent updates from Colin Wu of Wu Blockchain, Hayes has acquired a considerable amount of Pendle through transactions with Wintermute. This development points towards Hayes’ strategy of investing in assets likely to benefit from a shift in retail derivatives trading from centralized to decentralized exchanges (DEX).

Market Activity and Strategic Acquisitions

Over the past three days, Wintermute facilitated three transfers totaling over 155,000 Pendle tokens to a wallet presumably controlled by Hayes, identified as “Arthur Hayes 2.” Additionally, significant amounts of Pendle were transferred from Binance, suggesting a concerted effort to gather substantial holdings in the token.

As of now, Hayes holds approximately 1.555 million Pendle, valued at around $8.08 million. With an average acquisition cost of $2.02 per Pendle, his current paper gain stands at $4.89 million, a notable profit from these investments.

Token Performance and Market Analysis

The Pendle token itself is currently priced at $5.09, with a market cap of approximately $1.315 billion. Despite a recent dip in Pendle’s price by 3.39% over the last 24 hours and 3.72% in the past week, Hayes’ aggressive buying spree highlights his confidence in the token’s future performance.

Pendle’s role in the broader DeFi and DEX ecosystem could be a key factor in Hayes’ investment strategy. His recent blog post outlined a belief in the potential shift of derivatives trading volume from centralized platforms to DEXs, a narrative he thinks will gain traction regardless of the current technological underpinnings of these platforms

Apart from his investments in Pendle, Hayes has shared his bullish stance on other derivative-focused decentralized exchanges like dYdX and GMX, suggesting that these platforms might challenge traditional incumbents in the near future. 

However, he remains cautious about the overall market dynamics, predicting potential downturns influenced by regulatory decisions, such as the approval of spot ETFs.

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