Bitrabo Editorial
Recent data reveals that Shiba Inu whales have been decreasing their holdings in the past month, likely influenced by various factors, including the sluggish performance of the meme coin.
Shiba Inu Whales Decrease Their Holdings
Information from IntoTheBlock indicates a reduction in holdings of Shiba Inu whales over the last 30 days. Notably, there has been a decline of more than 6% among investors with holdings ranging from $100,000 to $1 million worth of SHIB. Moreover, whales owning between $1 million and $10 million SHIB and $10 million Shiba Inu tokens have witnessed decreases of over 3% and 7%, respectively.
This pessimistic sentiment among Shiba Inu whales appears to have intensified in the past seven days, with a more than 670% drop in large holders’ netflow. A decrease in this metric signifies that these investors are selling tokens rather than acquiring more. Additionally, significant transactions have decreased by nearly 5%.
The lackluster price performance of Shiba Inu is a key factor driving these whales to offload their tokens. The second-largest meme coin has experienced declines of over 7% and 14% in the past seven and thirty days, respectively. While some of the downtrend can be attributed to Bitcoin’s fall, Shiba Inu has struggled to recover even when Bitcoin has seen an uptick.
These whales are also likely cutting their losses as Shiba Inu remains vulnerable to further declines. Most current SHIB holders purchased the meme coin when it was above $0.00002. Hence, it is reasonable for these investors to practice risk management considering the vast difference from that price level.
SHIB’s Growth Stalls
Analysis from IntoTheBlock indicates that Shiba Inu’s adoption has plateaued, suggesting a lack of new investors entering the scene. This stagnation poses concerns since new investors often bring fresh capital and trigger price surges.
Shiba Inu seems to be facing a similar situation as Dogecoin, with both cryptocurrencies experiencing flat network activity and a decrease in new addresses. This trend may be due to traders preferring newer meme coins that could offer higher returns compared to Dogecoin or Shiba Inu.
According to crypto analyst Altcoin Sherpa, major cap meme coins like Dogecoin and Shiba Inu might only see limited price gains in the current market phase and are more suitable for whale investors with substantial resources. This clarifies why 73% of Shiba Inu’s supply is controlled by these whales.
Currently, Shiba Inu is trading around $0.00001412, showing a growth of over 6% in the last 24 hours, based on data from CoinMarketCap.