Shiba Inu, a popular cryptocurrency, has experienced a downward trend in its price since the beginning of the month. It fell as low as 20% from the yearly open, reaching $0.000008735 on January 8th. Although the crypto has made a 15% recovery since then and is now trading at $0.000009763, its price is still showing signs of decline, with a 3.3% decrease in the past 24 hours.
During this period of price volatility, some Shiba Inu whales have been taking advantage of the dip. On-chain data reveals that these whales have accumulated a massive 2.39 trillion SHIB tokens, which are currently worth $24.15 million. What is interesting is that these whales have chosen to store their SHIB tokens in cold storage.
Cold storage refers to digital wallets that are not owned by crypto exchanges, making the SHIB tokens stored in them inaccessible for trading or selling. By putting their Shiba Inu into cold storage, these whales demonstrate their intention to hold onto their tokens for the long term, often referred to as “HODLing” in the crypto community. This signals their confidence in the potential future value of Shiba Inu.
Shiba Inu’s ecosystem is known for attracting numerous whale investors, and transactions among these whales are not uncommon. According to the on-chain transaction tracker Lookonchain, there have been significant SHIB transfers from the popular crypto exchange Binance to four whale addresses in the past 30 days.
The latest significant transfer involved 136.86 billion SHIB tokens, worth $1.38 million at the time, being moved to a newly created wallet. This accumulation, however, is the smallest among the four whales. The other three whale transactions were of larger proportions, including one by TRON founder Justin Sun, who accumulated 577 billion SHIB tokens worth $5.82 million from Binance.
As of now, Shiba Inu is trading at $0.0000098277 based on the daily chart. The downward trend in its price is a cause for concern for some investors. However, the recent accumulation of SHIB tokens by whales suggests that these investors remain confident in the token’s long-term prospects, despite market volatility.
Data from IntoTheBlock shows that large SHIB holders currently hold 78% of the total circulating supply. This concentration of ownership gives these whales the potential to manipulate the price to their advantage. It is important to note that market manipulation can influence the price movement of any cryptocurrency.
Shytoshi Kusama, the lead developer of Shiba Inu, recently encouraged the growing SHIB community in a social media post to remain steadfast. This message came in response to the introduction of Shib name tokens and highlights the dedication of the development team to creating a network state for Shiba Inu.
In an effort to push the price of SHIB up, the burn rate of SHIB tokens has witnessed a significant spike. The burn rate tracks the amount of SHIB tokens taken out of circulation permanently. Recently, the burn rate experienced a massive 395.43% increase, indicating a strong push to increase the scarcity and value of SHIB tokens.
The recent accumulation of 2.39 trillion SHIB tokens by Shiba Inu whales has caught the attention of the crypto market. While the price of Shiba Inu has been on a downtrend, these large investors remain confident in the token’s long-term prospects. The concentration of ownership among large SHIB holders raises concerns of potential price manipulation. However, the development team’s commitment to the network state and the efforts to increase token scarcity through the burn rate indicate a promising future for Shiba Inu. As always, it is crucial for investors to conduct thorough research and make informed decisions when participating in the cryptocurrency market.