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Shiba Inu Whale Address Activity Increases as Large Caps Going Through Sell-Off

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Fri, 01/07/2022 - 09:06
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Arman Shirinyan
Shiba Inu holders are getting more active as market falls into deep correction
Shiba Inu Whale Address Activity Increases as Large Caps Going Through Sell-Off
Cover image via stock.adobe.com

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As the cryptocurrency market correction accelerates and larger cap coins and tokens are losing more than 20% of their worth, smaller positions like Shiba Inu attract more traders as network activity data suggests.

Address activity increase

In addition to private traders, Shiba Inu has attracted more whales, with the number of active addresses showing an 88% increase on whale tracker website WhaleStats. The increase in activity is being tracked whenever entities start making transactions or make any other manipulations with their funds.

Shiba Inu Market Data
Source: WhaleStats

But at the same time, according to the token's price action on the market, the increased activity could be followed by increased selling activity. According to TradingView's data, Shiba Inu has lost approximately 15% of its value in the last four days.

The increased selling activity is tied to the overall correction on the cryptocurrency market. With the unexpected price drop of Bitcoin, more traders have decided to exit the market in advance and stay in stablecoins.

Shiba Inu whales are buying more

Prior to the strong drop, Shiba Inu whales have decided to support their favorite token during its battle with FTT token for first place among whale wallets. Previously, Shiba Inu's dominance swiftly dropped to 5%, which allowed FTT token to reach first place as the largest holding among Ethereum network whales.

Shiba Inu Whale Holdings
Source: WhaleStats

But shortly after, Shiba Inu whale holdings faced a $300 million increase that put it back in first place, with $1.7 billion on the balances of whale-tier addresses. At the same time, strong buying activity on the market failed to put on-chain data in a bullish state with metrics like net flows and network growth staying in the red zone.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.