- 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.
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