Shiba Inu (SHIB) has witnessed a drop in price following the launch of the Layer 2 solution Shibarium. Over the past 24 hours, SHIB has dropped 7.7% and is down 10% for the week.
The declines come after the rollout of Shibarium saw technical difficulties and a bridge error that temporarily locked user funds. Though the Shibarium team resolved the issues within hours, the launch snags appeared to dampen investor enthusiasm for Shiba Inu.
Whale Alert, a service that tracks large cryptocurrency transactions, recently detected a large movement of Shiba Inu. According to Whale Alert, approximately 4.7 trillion SHIB were transferred to a previously unused wallet address.
New Shiba Inu whale with over 4.7 trillion SHIB
While the owner of the receiving wallet is unknown, a transaction of this size, worth over $43 million, signifies the potential emergence of a new large holder of SHIB. The massive Shiba Inu transfer could potentially also mean an exchange moving funds into a newly generated wallet address.
Analysis of recent on-chain data shows an increase in large ‘whale’ transactions of SHIB over the past week. Some large holders appear to be accumulating SHIB following the token’s price pullback after a brief rise. These conditions have presented an opportunity for discounted purchases.
Also read: Shiba Inu: Shytoshi Kusama’s Shibarium Launch Hint Sparks Transfer of 33 Billion SHIB
The price of SHIB is declining since the launch of the Shibarium Layer 2 blockchain saw technical problems. An error with the Shibarium-Ethereum bridge has resulted in user funds being temporarily locked and inaccessible.
As developers work to resolve the Shibarium bridge error, some Shiba Inu investors may be taking advantage of the lower SHIB prices for accumulation. However, the intentions behind the recent 4.7 trillion token transfer remain unclear.