Shiba Inu, one of the popular meme cryptocurrencies, is found to be the most centralized among major tokens, raising concerns about its stability.
Centralization of Shiba Inu
According to a recent study by Santiment, the top 10 wallets of Shiba Inu control 62% of its circulating supply. For comparison, the largest stablecoin Tether (USDT) is second with 51.8%, while Ethereum (ETH) ranks third with 49%. The high concentration of assets in the hands of a few holders contradicts the ideals of decentralization in the crypto industry and makes the asset more vulnerable to significant price swings due to potential massive sell-offs or accumulation efforts.
SHIB Price Analysis
As of this writing, the price of Shiba Inu stands at around $0.00001159, marking a 3% decrease over the past day. Its market capitalization has slipped to just under $7 billion, placing SHIB as the 24th largest cryptocurrency in the entire market. However, key metrics suggest that the price may be gearing up for a renewed rally.
Growth Potential
In the last 24 hours, the Shiba Inu team and community have burned over 13.4 million tokens, representing a 4,000% increase compared to the figure observed on July 3. The primary goal of the burning mechanism is to reduce the supply of SHIB and potentially increase the asset’s value through scarcity. Additionally, a significant decrease in the supply of Shiba Inu tokens on centralized exchanges has been observed, indicating a shift towards self-custody methods and reducing immediate selling pressure.
In the context of high centralization of Shiba Inu, it is important to consider the risks associated with sudden price fluctuations, but the burning activity and decrease in tokens on centralized exchanges may contribute to the asset's value growth in the future.
