Anika Begay
Data from the market intelligence platform In the Block proves that Shiba Inu Whales have dumped their holdings in the last 30 days. This development is likely due to several factors, including the unimpressive price performance of the meme coin in recent times.
Shiba Inu Whales Reduce Their Stocks
Data from IntoTheBock shows that Shiba Inu Whales have reduced their holdings over the past 30 days. Specifically, there has been a decline of over 6% in the holdings of investors between $100,000 and $1 million in SHIB value. Additionally, there has been a decline of over 3% and 7% in the holdings of whales holding between $1 million and $10 million in SHIB and $10 million in Shiba Inu tokens, respectively.
This bearish sentiment among Shiba Inu Whales appears to have intensified in the last seven days, as the net flow of large holders has dropped by over 670%. A drop in this metric indicates that these investors are dumping their tokens rather than accumulating more. Meanwhile, it is also worth mentioning that large transactions have dropped by almost 5%.
Shiba Inu unimpressive price trend can be identified as one of the reasons why these whales dumped their tokens. second largest meme coin has fallen by over 7% and 14% in the last seven and thirty days, respectively. While the meme coin’s downtrend can be attributed to Bitcoin’s decline, it is worth mentioning that Shiba Inu has sometimes failed to recover even when the flagship cryptocurrency has recovered.
These whales are also believed to be cutting their losses, as the Shiba Inu is still at risk of further declines. Data from IntoTheBlock shows that the majority of current SHIB holders have purchased the meme coin while was above $0.00002So it is understandable that these investors try to apply risk management, seeing how much the meme coin deviates from that price level.
SHIB adoption is stagnant
Data from IntoTheBlock shows that Shiba Inu Adoption has been stagnant for quite some time now. This means that the meme currency is no longer seeing an influx of new investors like it used to. This is certainly concerning, considering how this category of investors helps attract new money and trigger price increases.
Shiba Inu seems to suffer the same fate as Dogecoin, which saw its network activity remain unchanged over the past three months, with the number of new addresses declining. One plausible explanation is that meme coin traders are currently liking newer meme coins, as they are more likely to give them higher returns than Dogecoin or Shiba Inu.
As a Cryptocurrency Analyst Altcoin Sherpa noticedMajor meme cap coins like Dogecoin and Shiba Inu are likely to see only a few price gains in this bull run and are only suitable for whales who can invest a considerable amount. This explains why 73% of the Shiba Inu supply is currently concentrated in the hands of these whales.
At the time of writing, the Shiba Inu is trading at around $0.00001412, up more than 6% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
