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Shiba Inu Whale Wallet Dominance Drops Below 8% Amid Volatility Absence on Trading Pair

Thu, 12/09/2021 - 11:01
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Arman Shirinyan
Shib whales are dropping their holdings, and here are the main reasons
Shiba Inu Whale Wallet Dominance Drops Below 8% Amid Volatility Absence on Trading Pair
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Shiba Inu's performance in the last 40 days was not something that most investors continuously increasing their positions would expect from a token that showed a 1000% gain in two weeks, and some of the token's supporters are dropping it.

SHIB dominance continuously dropping

For a long time, Shiba Inu was the most popular holding among whale-tier addresses on Ethereum blockchain, with its dominance reaching up to 50% at its peak. But since then, the token's popularity has dropped drastically. For now, it barely competes with tokens like FTX and USDT.

Shiba Inu Holdings
Source: Whalestats

While whales are not rushing to sell their holdings at the moment, some have already dropped a major portion of SHIB by reducing their positions by millions of dollars. According to volume data, whales are less likely to sell their holdings in the foreseeable future due to the absence of liquidity on SHIB markets.

Reasons for popularity drop

The main reason for whales to drop some portion of their holdings is most likely the performance of a token that has not yet shown any signs of recovery since its peak back on Oct. 28.

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But in addition to negative market performance, Shib has also been losing an important viable investment option, which is liquidity and volatility. According to TradingView, weekly average volatility on Shib has returned to pre-pump times with an average of 3%.

In addition to losing volatility, Shib became less liquid, which means that any major selling pressure would launch the asset directly on the bottom. With current holdings, Shiba Inu whales could easily drop the asset's price by more than 50% due to the absence of buying power on the market.

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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.