Shiba Inu (SHIB) Struggles in December as Dormant Whale Withdraws 220B Tokens from Binance

This transaction drew attention in the crypto community due to its significance. SHIB Market Struggled in December December has proven challenging for Shiba Inu

A dormant Shiba Inu whale has been making headlines after withdrawing 220 billion tokens, roughly $4.63 million, from Binance. This significant transaction has drawn attention within the crypto community.

Shiba Inu’s market performance in December was marked by a 25% decline. Despite a recent uptick, the token has faced sustained downward pressure, struggling to recover from the losses.

While there was a 6.4% increase in the past 7 days, a two-week analysis shows a 7.7% decline, indicating ongoing volatility. These market challenges have coincided with increased whale activity and substantial outflows from centralized exchanges like Binance.

According to blockchain data from Lookonchain, a Shiba Inu whale wallet that had been dormant for five months has now reactivated. The wallet withdrew 220 billion SHIB from Binance.

A whale withdrew 220B $SHIB($4.63M) from #Binance 2 hours ago after being dormant for 5 months.https://t.co/vHHs25C754 pic.twitter.com/r0sFEXMyEC

— Lookonchain (@lookonchain) January 1, 2025

Earlier transactions linked to the same wallet include substantial inflows of 65.28 billion and 64.52 billion SHIB, which were recorded 146 and 151 days ago, respectively. These earlier inflows were followed by minor outgoing transactions, making the recent withdrawal the largest activity from this address.

Insights from IntoTheBlock indicate a significant rise in outflows from large holders, which may reflect a shifting confidence among major stakeholders.

Over the past week, outflows surged by 627.85%, suggesting increased distribution of SHIB tokens by influential wallets. Large outflows rose by 121.61% monthly and consistently increased by 108.23% over the 90-day period.

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The frequency of substantial withdrawals and redistributions may indicate declining confidence in the token or strategic reallocation of funds by whales. Such outflows often contribute to heightened selling pressure, which can negatively impact token prices.

While whale activity has raised concerns, the community has made significant progress in its token burn initiatives, achieving a notable milestone in 2024. Data from Shibburn reveals that 44.6 billion SHIB tokens were burned over the year, which is valued at approximately $1,014,740.75 based on current market prices. The burn efforts, executed at varying price levels, have sought to reduce the token’s circulating supply and support its long-term value.

In December alone, 2.67 billion SHIB were destroyed through 143 separate transactions. This underscores the community’s consistent commitment to reducing supply despite the token’s ongoing market challenges.

The recent withdrawal by a dormant whale and the sustained outflow trends from large holders highlight potential shifts in the ecosystem. While these activities raise questions about market confidence, the community’s dedication to token burns demonstrates a counterbalancing effort to stabilize and enhance the token’s long-term prospects.

: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.