In the past week, significant holders of Shiba Inu, commonly referred to as “whales,” have accumulated approximately $100 million worth of the cryptocurrency, as reported by analytics firm IntoTheBlock.
Shiba Inu’s current price is at $0.00000759, with a market capitalization of approximately $4.47 billion, according to data from CoinGecko.
Potential Catalysts on the Horizon
The increased attention on Shiba Inu comes as no surprise, considering the recent launch of its Shibarium Layer 2 solution, which has surpassed one million transactions and wallets. This achievement indicates heightened activity and potential use cases for the token.
Despite reaching this significant milestone and the substantial accumulation by whales, the price of Shiba Inu has yet to experience a substantial surge. This situation is largely attributed to broader challenges in the cryptocurrency market.
However, the combined factors of Shibarium’s success and significant buying by prominent holders could serve as substantial catalysts for future price movements, attracting both retail and institutional investors.
Large Holders and Associated Risks
Data on ownership concentration reveals that 11 whales collectively possess a staggering 62.48% of the total SHIB supply, equivalent to 613.85 trillion SHIB tokens. On the other hand, a more extensive group of 48 investors holds about 14.83%, or 145.69 trillion SHIB tokens.
The significant influence of a handful of investors over the asset’s direction makes the meme coin susceptible to potential large sell-offs should these whales decide to cash in.
In the past week, there has been a remarkable increase in large holder inflow, soaring by 1,512.63%. However, it’s essential to note that the 30-day change has seen a decrease of 10.08%.
These dynamics highlight the intriguing and somewhat precarious nature of Shiba Inu’s market, where the actions of a few major holders can significantly impact its trajectory.