Whale Alert, a popular service that tracks large crypto transactions, reported a colossal transfer of Shiba Inu (SHIB) tokens. A staggering one trillion SHIB, equivalent to approximately $28,814,000, was transferred from an unidentified wallet to Gate.io, a major cryptocurrency exchange.
This transaction has caught the attention of investors and analysts alike, leading to widespread speculation regarding its potential impact on the market. The reasons behind this massive transfer remain speculative, as the identity of the sender and the intended purpose of the transaction are not known.
However, such significant movements of coins to a crypto exchange usually indicate a potential sale or preparation for trading activity, which can lead to increased volatility on the market, especially for a coin as popular as SHIB. On the other hand, the major SHIB transfer comes at a turbulent time for Shiba Inu and the wider crypto market.
Major price dip for Shiba Inu
The past 24 hours have seen a noticeable decline in prices across the board, with SHIB experiencing a significant downturn. Currently, the token is trading at $0.00002889, marking a drop of 14.27% from the previous day. Despite this recent dip, it is important to note that SHIB has shown remarkable growth over the last month, with an increase of 193.86% following a substantial rally.
However, adding to the market's nervousness, data from CoinGlass reveals that there has been a surge in liquidations of SHIB in the last 24 hours. The total amount liquidated reached $5.28 million, with the majority, $4.08 million, coming from long liquidations, where investors bet on the price increasing. Meanwhile, short liquidations, where bets are placed on the price dropping, accounted for $1.20 million.
Overall, the large-scale movement of SHIB to Gate.io, combined with the significant price dip and increased liquidations, has left the cryptocurrency community on edge. The next few days will be crucial in determining the impact of this massive transfer on Shiba Inu's market position and whether it will exacerbate or alleviate the current market volatility.