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Shiba Inu’s dramatic decline in its numbers from 1.19 million to 1.15 million is a cause for concern
Of late, Shiba Inu is under great pressure as most of the Shiba Inu whales are making an exit from the cryptomarket. Because of the ongoing geopolitical skirmishes, the crypto market underwent intense fluctuations. This induced a bearish trend in the market only to discourage investors from flushing the market with more money. However, SHIB was shining brightly amidst all the gloom, attracting investors’ attention since the beginning of 2022. But around March 15, the number of Shiba Inu holders dropped from 1.19 million to 1.15 million. Apparently, Shiba Inu whales have played a definite role in this fall.
The ongoing war between Russia and Ukraine changed investor sentiment in the cryptocurrency market. With Russia using it as a token of exchange in face of financial sanctions, and Ukraine receiving cryptocurrency donations, the very notion of decentralized finance has come under scrutiny. However, in spite of the volatility, digital tokens including meme coins like Dogecoin and Shiba Inu were doing well just like Bitcoin and Ethereum. SHIB occupies the 15th position in the crypto market and has a market capitalization of roughly US$13.3 billion. But last October, the Dogecoin killer’s price went down by 72% from its all-time high. And fortunately, only its whale accumulation is keeping its value high, since the beginning of 2022. In spite of having a good bullish run, a number of metrics such as burn rate, contributors, bullish sentiments, volatility, and social volumes are indicating its downward spiral. And precisely, taking a cue from these factors, Shiba Inu whales are stepping back.
Shiba Inu Whales didn’t leave any opportunity to elevate SHIB
Since the cryptocurrency market entered a bearish state, the movement of digital tokens in wallets was less. But Shiba Inu whales have been grabbing the slightest opportunity to get on the bull run for a while now. When SHIB price recorded a 5% recovery, an anonymous whale grabbed 271 billion tokens worth more than US$6 million. On the other hand, the top 500 Ethereum wallets have also been purchasing billions of Shiba Inu tokens. According to experts, the reason behind the whales purchasing SHIB is to average their position. By doing so, they can capitalize on both long and short-term gains.
According to WhaleStat’s analysis, whales prefer to buy Shiba Inu next to Ethereum. It is currently the second largest investment of the top holders. On March 16 alone, ETH whales have bought 50,736,574,302 SHIB tokens worth US$1,106,564. In February, WhaleStats has reported that Shiba Inu has once again entered the top most-purchased cryptocurrency list.
Ethereum Whales Helped SHIB gain value
Although Shiba Inu is down by 75% from its all-time high, Ethereum whales are flocking the Dogecoin killer. This clearly shows the love of ETH whales for the SHIB token. They have also ramped up their buying and accumulation of various digital assets.
This massive buying has created a positive movement for Shiba Inu. When big wallets go on a buying spree, they burn some tokens to raise the value and create scarcity. Experts predict that it could be the case with Shiba Inu whales. The big wallets might be planning to burn a massive amount of SHIB tokens to accumulate value and make an impact on the price.
Can it last forever?
Although the buying and burning trend could give a boost in the long-term, currently, it is facing backlash. While Shiba Inu whales are staking up their wallets with the Dogecoin competitor, SHIb holders are taking a step back. In the past five days, Shiba Inu holders have dropped 3.55% of the tokens. Since March 15, the Shiba Inu holders have dropped drastically. However, this is not the first time SHIB is facing such a situation. Earlier in January also, Shiba Inu investors backed off from the meme coin, only to come back and join again. For long-term players, the Shiba Inu whales exiting and joining is a normal thing. But for short-term investors, it could hurt their investment.