- Experts are investigating whale wallet movements to account for the recent drop in SHIB price across spot exchanges.
- Shiba-Inu-themed cryptocurrencies DOGE and SHIB kicked off the alt season before SHIB consolidation started.
- Shiba Inu market capitalization has dropped, and SHIB has slipped to rank 11.
Shiba Inu coin lost market capitalization to Dogecoin and slipped out of the top ten cryptocurrencies. Proponents consider SHIB highly centralized as the concentration of Shiba Inu holdings in whale wallets comes under scrutiny.
Shiba Inu whales shed their SHIB holdings, price plunges
Shiba Inu ownership concentration came under scrutiny. A total of 872,382 wallets control 72% of SHIB, according to data from Coinmarketcap.com. The biggest whale wallet holds nearly 41% of SHIB; the second-largest wallet holds 34% of SHIB’s circulating supply.
Experts have flagged the concern that despite an abundance of transparency in cryptocurrencies, it is challenging to link wallets to entities. This leaves market participants unaware of whale concentration and movements that influence crypto prices.
SHIB first gained popularity and dominance as a memecoin when it flipped Dogecoin in market capitalization. Traders are tracking movements of a SHIB “whale” wallet that controls over 13% of the circulating supply of the Dogecoin killer.
Whale wallet concentration has raised concerns about liquidation with mounting selling pressure on SHIB across spot exchanges. At the time of writing, SHIB has posted nearly 15% losses overnight.
There is no sell-off from the “whale wallet” that moved nearly 10 trillion SHIB tokens. Transaction activity on the SHIB network exploded. It exceeded Ethereum, Solana and other cryptocurrencies (excluding Bitcoin) momentarily.
An increase in trade activity can be attributed to the selling activity of the token holders taking profit from the memecoin’s recent rally.
Jacob Oracle, a financial analyst, shared details of the whale wallet’s holdings,
Remember the guy who turned his $8K $SHIB Investment into $5.7 Billion?
— Jacob Oracle (@JacobOracle) November 3, 2021
Well, he recently moved 40+ trillion of his #SHIB holdings to new four new wallets.
If he decided to sell these bags, SHIB would plummet -99.99% to zero. Oof. pic.twitter.com/HqrWw57nr2
Interestingly, it has to be noted that there is no evidence of selling from the whale wallet yet.
Shiba Inu and Dogecoin tokens rallied last week, posting double-digit gains overnight and kicking off the altcoin season.
Dino Ibisbegovic, market analyst at Santiment, said
There ... seems to be an increase in SHIB sell-offs.
Analysts have noted that 1.36 trillion more SHIB hit centralized exchanges in the past 24 hours. SHIB deposit addresses have increased by nearly 150% since the beginning of November. This implies an increase in selling pressure on SHIB on exchanges worldwide.
FXStreet analysts have evaluated the Shiba Inu price trend and predicted that SHIB is bound for a downswing before the memecoin surges to $0.00012.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.