Santiment's latest report highlights a significant concentration of cryptocurrencies in major wallets, noting potential market risks and opportunities.
Asset Concentration and Market Risks
According to Santiment, the largest holders of Shiba Inu cryptocurrency manage 61.3% of the total SHIB token supply. This distribution suggests that the price of SHIB could change drastically depending on the actions of a few holders. If these major holders decide to sell their assets, it could lead to a significant price drop and increased market volatility.
Vitalik Buterin's Wallet and SHIB Dynamics
Vitalik Buterin's token burn event added complexity to SHIB's market dynamics. Buterin burned 90% of his SHIB tokens and donated the remainder to charity. However, the '0xdEAd' wallet still holds over 410 trillion SHIB in the market.
Mysterious Owners and SHIB Market Influence
If Santiment's data includes the wallet Buterin used for burning, it's discussed that 613 trillion SHIB are held by the top 10 holders, with '0xdEAd' holding 410.43 trillion SHIB. The remaining 203 trillion SHIB are distributed across nine other addresses, mostly belonging to exchanges, with '0x2d7A' being an exception among unclear wallets.
The concentration of assets in the hands of a few major wallets presents both risks and opportunities for SHIB holders. High volatility may impact smaller investors, while major holders can stabilize the market through long-term investments.
