• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Shiba Inu Token Centralization Poses Risk

user avatar

by Giorgi Kostiuk

a year ago


The distribution analysis of Shiba Inu tokens reveals that five large addresses control 57% of the total supply, raising questions about decentralization and potential market volatility.

Centralization and Its Consequences

Recent data indicate that five wallets hold 565 trillion SHIB, accounting for 57% of the token's total supply. One of these addresses alone controls 41.7% of the entire stock, highlighting a significant disparity between active and less active holders. Such concentration could amplify market risks, particularly in the event of abrupt movements by large holders. Monitoring the activity of these wallets is crucial for anticipating short-term price fluctuations and understanding broader market trends.

Trends in SHIB Blockchain

Recent blockchain data indicate shifts in dynamics. Over the past week, outflows from large wallets have decreased by 31%, indicating reduced selling pressure from whales. Conversely, inflows into large wallets have risen by 53%, suggesting that prominent investors are accumulating tokens at lower prices. From a technical standpoint, the token's price is above its 200-day EMA support level at approximately $0.00002079. Holding above this critical threshold could signal potential market sentiment shifts. However, to maintain upward momentum, SHIB would need to break above resistance levels near $0.00002250 and $0.00002325.

Strategic Investor Accumulation

Accumulation trends suggest growing interest from strategic investors looking to capitalize on lower prices. Resistance levels at $0.00002250 and $0.00002325 remain key hurdles for the bulls, and breaking above these thresholds would be necessary to shift market sentiment positively. The centralization of SHIB holdings in a few wallets poses unique challenges for market stability. Large-scale transactions by these whales significantly impact prices, underscoring the importance of monitoring their activity. The upcoming days will likely be crucial for the asset's price trajectory, requiring a sustained defense of the $0.00002079 support level and ongoing accumulation by larger players. However, reliance on a small number of investors leaves the market vulnerable to sudden shifts, emphasizing the necessity of caution among traders and stakeholders.

By closely observing wallet activity and technical indicators, market participants can better prepare for the potential outcomes of this concentrated asset distribution.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Marina Protocol Offers Various Income Opportunities for Users.

chest

Marina Protocol offers users multiple ways to earn cryptocurrency through activities like Daily Quiz, Auto Mining, Daily Ticket, Daily Tasks, and Referrals.

user avatarDavid Robinson

Google's TPU Chips Outperform Competitors in AI Hardware War

chest

Google's TPU chips have surpassed OpenAI's GPT-5 in independent tests, prompting a strategic shift at OpenAI.

user avatarAndrew Smith

CoreWeave Plans $2 Billion Private Offering

chest

CoreWeave CRWV aims to raise $2 billion through a private offering of convertible senior notes due 2031.

user avatarJacob Williams

OCC Addresses Bankers' Concerns on Digital Currency Risks

chest

OCC addresses bankers' concerns on digital currency risks, emphasizing the need for a balanced regulatory environment.

user avatarZainab Kamara

SPX6900 and Official Trump Experience Price Drops Amid Market Volatility

chest

SPX6900 and Official Trump tokens have experienced significant price drops of 5.81% and 3.12% respectively due to market volatility and profit-taking.

user avatarSon Min-ho

Eric Balchunas Defends Suitcoiners Amid Criticism

chest

Eric Balchunas defends institutional investors, known as suitcoiners, claiming their involvement has driven the recent Bitcoin bull market and improved its stability.

user avatarAyman Ben Youssef

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.