- While the popular meme cryptocurrency is experiencing pretty good price action, whales are taking control of the coin.
After the altcoin market recovery, Shiba Inu and other smaller altcoins experienced spikes in price, with SHIB rising over 30 percent from last week. Retail traders are buying the asset after this positive sentiment, while whales, which control 26 percent of the supply, face a profit of over $100 million.
Whales control memecoin
According to data from WhaleStats, whales currently control 26% of the total supply of the popular cryptocurrency. Exchange-related addresses and companies are not counted by the audience, allowing the actual percentage of large holders on the chain to be calculated.
With the increasing number of whales, assets tend to lose the previous volatility that was present when almost 100 percent of all traders in the market were short-term speculators. As the composition of the Holders proves; The Shiba Inu is currently considered a medium-term asset and the majority of holders entered the asset at least six months ago.
Once whales take control of an asset, the correction tends to stall, as generally large wallets continue to accumulate rather than sell the token or coin. Large sales volumes typically occur at the end of bullish rallies where retail purchasing power exceeds unrealized losses and then turns into unrealized profits.
Whales began hoarding Shiba Inu after the token lost nearly 30 percent of its value in the days following its all-time high in October. Whales bought up to $300 million on SHIB in a matter of days.
Unfortunately, despite all this aggressive buying, SHIB failed to provide any kind of recovery in the market, leaving most investors with a 40-60% loss.
Shiba Inu price rises 25%, outperforming Dogecoin
At the time of writing, the price of the Shiba Inu cryptocurrency has increased by nearly 25 percent in the past 24 hours, according to data provided by crypto ranking site CoinMarketCap. It is currently changing hands at $0.00002793 on the Bitstamp exchange.
For comparison, the rival meme coin, Dogecoin, experienced a modest 6% increase in the same period.
Additionally, the dog cryptocurrency’s trading volume increased 244 percent to over $2.7 billion, making it the sixth most traded cryptocurrency (behind only Tether, Bitcoin, Ethereum, Bitcoin Cash and Binance USD). Shiba Inu is ranked third on Coinbase, the number one crypto exchange in the US.
While the meme coin’s recent price increase has been impressive, it’s still 67.47 percent below its record high. However, its Dogecoin rival has gained 72 percent since its multi-month low of $0.00001704.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.