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New blockchain information shows that large investors remain in control of the Shiba Inu crypto market, potentially creating both stability and risk for smaller traders. The meme coin has experienced regular trading activity throughout while exhibiting zero price actions over recent days. Related Reading Today’s $1K XRP Bag May Become Tomorrow’s Jackpot, Crypto Founder Says 16 hours ago Major Holders Hodl Most Of SHIB Tokens
According to blockchain tracking site IntoTheBlock, around 74% of Shiba Inu’s 95 billion circulating tokens are in whale-like large addresses. The concentration is high and puts the token’s ecosystem into the hands of few wealth investors.
Concentration among large holders sends contradictory signals to the market: some analysts interpret it as a confidence vote for SHIB’s future, while others see it as a double-edged sword that creates an unstable environment wherein the big players would set off cataclysmic price fluctuations should they wish to liquidate their assets. Source: IntoTheBlock Weekly Transaction Volume Exceeds $120 Million
In the same tracking metrics, there have been large trades covering over $120 million with respect to SHIB within the last week (each trade being above $100,000). This substantial trading volume comes despite minimal price action, with the meme crypto having a current price tag of $0.00001226 and showing less than 1% daily change.
The volume of transactions provides a glimpse into institutional and whale-scale activity on the platform, a market analyst disclosed. The ongoing high-value transactions indicate sustained interest among large investors, despite the price staying flat. SHIB price up in the last 24 hours. Retail Traders Confronted With Reassurance And Risk
The large holding of SHIB tokens by rich investors is a mixed picture for small investors. On the positive side, the investment from such huge investors could assuage retail investors regarding the token’s stability and long-term worth.
But this configuration also creates substantial risk. Any abrupt change of position by these large holders can bring on rapid and steep price action. Market watchers point out that when the ownership is so concentrated, even normal portfolio rebalancing by a handful of large holders can make a huge market disturbance. SHIB market cap currently at $7.22 billion. Chart: TradingView Crypto Market Watches Whale Behavior For Price Signals
Since whale activity usually precedes significant market action, it is closely monitored by the crypto community. With over 70% of the SHIB supply in the hands of moneyed investors and $120 million in recent high transactions, many are keeping tabs for reversals in sentiment from such powerful hands. Related Reading Whales Swallowing Bitcoin Fast — Will This Push BTC Price Up? 21 hours ago
The current context of SHIB truly depicts a classic case of where a few well-to-do investors can significantly impact price action in cryptocurrency markets. In these circumstances, the very high transaction volumes reflect true interest among institutional investors, while the extreme concentration of holdings must certainly remain a foremost consideration in the assessment of any market dynamics concerning SHIB.
Featured image from Gemini Imagen, chart from TradingView