Shiba Inu: Are Whales Pulling Down SHIB’s Price?

Paigambar Mohan Raj
Source: Benzinga

Shiba Inu (SHIB) is undoubtedly one of the most popular cryptocurrency projects. However, most of the token’s supply is concentrated in the hands of a few large wallets. While SHIB made a healthy recovery in the past few days, the rally did not sustain itself. The project has lost the recovery it made yesterday, falling 7.7% in 24 hours, and the whales may have played a hand in it.

According to Whalestats, Shiba Inu (SHIB) holdings among the top 100 Ethereum whales have fallen to 15.5% from nearly 18% yesterday.

Source: Whalestats

Whalestats also shows that SHIB is currently the most traded token. Moreover, sentiment among the top Ethereum whales is “extreme fear.”

Source: Whalestats

Additionally, there has been an increase of more than 11% in the overall volume of large transactions on the Shiba Inu network.

Source: IntoTheBlock

The whale sell-off might have triggered SHIB’s losses in the last 24 hours. Due to their significant holdings, these large entities have the ability to shift directions of several metrics. SHIB’s large whale holdings are one of the many drawbacks of the project.

The other cause of concern is the lack of use cases for Shiba Inu. With a highly concentrated supply and the lack of any real-world use case, SHIB is indeed a very risky asset. However, the project is making an attempt to bring more use cases to the network.

Will Shiba Inu’s Shibarium lead to more retail holders?

SHIB is on the verge of launching its highly anticipated layer-2 network, Shibarium. With the launch, many expect SHIB’s use cases to spike. Layer-2 will remove SHIB as an ERC-20 token, moving it to its blockchain. The move is expected to increase the capabilities of SHIB, however, those aspects are yet to be seen.

If Shiba Inu can offer more utility to the public, it should ideally see an increase in retail holders. Its immense popularity will make it easy for the project to spread and push adoption. However, unless there is an increase in SHIB’s retail holders, the project will continue to follow the whims of its whale holders.

At press time, SHIB was trading at $0.00001121, down by 7.7% in the last 24 hours.