After the sudden 8% spike on the market, Shiba Inu has retraced and reached the new low on the market, which put it in second place among large Ethereum wallets, according to WhaleStats.
Shiba sitting in 2nd place
After losing more of its value, the net worth of SHIB holdings among whales has decreased and has reached second place. First place now goes to the "Other Tokens" category, which means that whales are not focusing on one token in particular and are redistributing their funds.
The overall dominance percentage of SHIB is at 7.2%, while other tokens are responsible for 7.5% of all holdings among whales. Even though Shiba Inu has lost its leading position, it still moves with a 2% lead against the third-place token, FTX.
Reasons behind the drop
First and foremost, the rapid price drop on the market has not stopped since the end of October. Shiba Inu lost more than 60% from its most recent ATH, which indicates that traders or whales are not willing to support or fuel any other bullish rally.
Due to the accelerated price drop, the net worth of the presented holdings has decreased from $2.1 billion to $1.7 billion, approximately.
Another reason may be that risks on the cryptocurrency market have increased significantly to extreme levels. Investors are now choosing safer options, like stablecoins, to avoid additional losses on the market.
SHIB is not the only token on the market rapidly losing its value. The token's closest competitor—Dogecoin is now staying at a 45% percent loss since its local high of $0.30 reached back on Oct. 29.