SHIB Whales Abandon Sinking Ship
In recent days, the ShibaInu ecosystem has proven to be similar to a rollercoaster ride for most investors.
This sentiment is reflected in the prominent decline recorded in whale activity on the Shiba Inu network recently.
The decline
Whales are mostly regarded as the crypto industry’s big players and investors, due to which they have a major influence on the overall dynamics of the market as well as the prices of assets.
The recent behavior of ShibaInu whales indicates that there is a change in confidence regarding the future prospects of the SHIB token.
In the last few days, there has been a significant decline in the number of large transactions that have taken place on the ShibaInu network.
Usually considered indications of whale movements, these transactions have seen a massive decline, as they have come down to a mere 26 from a high of 128.
There are a number of ways for interpreting such a large-scale drop in the number of large transactions on the ShibaInu network.
The possibilities
First off, there is a possibility that the SHIB whales may have decided to reduce their positions because they believe that the price of the second-largest meme token will face further downward pressure.
There is another perspective, which dictates that the decline in whale activity could be because they have adopted a wait-and-see approach, keeping in mind the uncertain situation in the market.
It is possible to get further context from the recent price performance of the ShibaInu token. According to the latest data, the meme token is trading at a price of $0.0000084.
At first glance, this may seem insignificant, but the historical performance of the SHIB token has to be considered and it should also be viewed in the context of the broader crypto market.
In the past, the DOGE rival has experienced considerable volatility and the current price could be an indication of the broader market sentiment.
The decline in large whale transactions could show that these big investors might be stepping back for now.
Shibarium disaster
This could be because of the disaster that has occurred in the form of Shibarium, the layer-2 protocol that had been widely anticipated.
Finally launched on August 16th, the Shibariumhype had been building up for quite some time, but it did not reflect on the meme token’s chart for even a day.
When Shibarium went live, there was a huge number of transactions and this resulted in technical difficulties for the network.
This did not help the price of the SHIB token at all, as it recorded a decline of about 15% in the last week. Data from CryptoQuant also showed that the token had high net deposits on exchanges.
This was an indication that the meme token was under selling pressure. In addition, while there was a drop in the price of the SHIB token, its trading volume recorded a rise.
It is not just the SHIB token that has taken the hit, but other coins part of the ShibaInu ecosystem are also suffering, which include Doge Killer (LEASH) and Bone (BONE).
