Shiba Inu (SHIB), the meme-inspired cryptocurrency, has experienced a significant downtrend since the beginning of the month. Its price plummeted by 20% from the yearly open and reached a low of $0.000008735 on January 8th. Although SHIB has recovered by 15% since then, trading at $0.000009763, it is still showing signs of decline with a 3.3% decrease in the past 24 hours.
Behind the scenes, Shiba Inu whales have been accumulating a staggering amount of SHIB tokens. According to on-chain data, these whales have collectively amassed a massive 2.39 trillion SHIB tokens, which is equivalent to $24.15 million. These tokens have been sent to cold storage, meaning they are stored in digital wallets that are not owned by crypto exchanges. This strategy indicates that these whales have long-term investment plans and intend to HODL their Shiba Inu tokens.
The Shiba Inu ecosystem is home to many whale investors, and it is not uncommon for large transactions to occur among them. In the past 30 days, significant SHIB transfers have been observed from crypto exchange Binance into four whale addresses. One notable transaction involved TRON founder Justin Sun, who accumulated 577 billion SHIB worth $5.82 million from Binance. The largest accumulation was made by an address known as 0xF633, which acquired 1.44 trillion SHIB worth $14.54 million from both Binance and Gateio.
The increasing accumulation of SHIB tokens by whales raises questions about the concentration of wealth and potential market manipulation. According to data from IntoTheBlock, large SHIB holders now control 78% of the total circulating supply. This concentration of ownership provides them with the power to potentially manipulate the price of SHIB to their advantage. However, the significant buys made by these whales also indicate their confidence in the long-term prospects of the token, despite recent market volatility.
In the midst of the growing SHIB community and recent market developments, Shytoshi Kusama, the lead developer of Shiba Inu, took to social media to encourage the community to remain steadfast. Kusama’s message came after the introduction of Shib name tokens and amidst a spike in the SHIB burn rate, indicating efforts to drive the price of SHIB higher. The burn rate recently witnessed a substantial 395.43% increase, signaling the community’s dedication to supporting the token.
The rise of Shiba Inu whales has undoubtedly influenced the SHIB market dynamics. While their accumulation of tokens raises concerns about wealth concentration and market manipulation, it also demonstrates their confidence in the long-term potential of the token. As the SHIB community continues to grow and evolve, it remains to be seen how the actions of these influential whales will shape the future of Shiba Inu. Investors are advised to conduct thorough research and consider the risks before making any investment decisions.
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