The cryptocurrency market has remained relatively stagnant recently, with uncertainty dominating investor sentiment. Despite this lack of clear price movement, on-chain activity continues, particularly for Shiba Inu, the second-largest meme-based cryptocurrency.
Whale Accumulation and On-Chain Activity
Recent data from IntoTheBlock shows that large Shiba Inu holders accumulated approximately 922.87 billion SHIB on the last day. This marks a significant increase from the previous day, with inflows doubling by 438.66 billion SHIB. These figures reflect activity among wallets that hold at least 0.1% of SHIB’s circulating supply.
At the same time, outflows from these large wallets notably increased. A total of 619.44 billion SHIB moved out of whale-controlled addresses, indicating some level of redistribution. However, since inflows exceeded outflows, the digital asset recorded a positive net flow of 303.43 billion tokens for the day, a sharp divergence from the previous day’s negative net flow of 48.41 billion SHIB.
Assessing the Market Impact
The rise in whale accumulation raises the question: Is this a bullish signal for SHIB? While an increase in large-holder inflows suggests growing confidence in an asset, the situation with the asset is more complex.
One key factor to consider is the concentration of SHIB holdings. A significant portion of the token supply is held by a small number of wallets, many of which belong to cryptocurrency exchanges. Estimates suggest that five major whale wallets collectively possess around 565 trillion SHIB, accounting for approximately 95.8% of the circulating supply.
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Who Controls the Token’s Market Movement?
Given this high concentration, the movement of large quantities of the token does not necessarily indicate a shift in market sentiment among individual investors. Instead, much of the activity could be related to exchange operations, internal transfers, or liquidity adjustments rather than strategic accumulation by independent whales.
This raises doubts about whether the recent inflows into whale wallets signal a bullish trend for the asset. While the net positive flow indicates that more SHIB was accumulated than sold, the broader implications remain unclear. Without confirmation that these large transactions reflect increased investor demand rather than routine exchange activity, it is difficult to determine their true impact on the asset’s future price movement.
While the increase in the token’s inflows into whale wallets may initially seem bullish, the dominance of a few large holders complicates the overall picture. With a significant portion of the token’s supply concentrated in a small number of wallets—many associated with exchanges—it remains unclear whether these movements indicate genuine accumulation or routine liquidity adjustments. Additionally, historical trends suggest that February has not been exceptionally robust for the digital asset, further adding to the doubts overshadowing its immediate future.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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