Shiba Inu (SHIB) Whales Disappear From the Market as the Meme-Inspired Cryptocurrency Becomes Less Volatile

The more expansive the price behavior of the popular meme-inspired cryptocurrency Shiba Inu (SHIB), the less extensive the behind-the-scenes action

Despite the significant price movements of Shiba Inu (SHIB), on-chain activity reveals a contrasting narrative.

According to IntoTheBlock, the net inflow of SHIB tokens into major addresses, known as whales, has sharply declined. Over the past two days, the average net inflow dropped from 511.6 billion SHIB to 132.21 billion SHIB. Notably, these inflows peaked at 2.4 trillion SHIB a week ago.

This marks a steep decline, with a 94.5% decrease in SHIB volumes. The analysis includes addresses that hold a minimum of 0.1% of the circulating SHIB supply.

Furthermore, data on large transactions (minimum of $100,000 in SHIB) reveals a substantial decrease. The number of such transactions dropped from 892 to 282, while the volume decreased from 21 trillion SHIB ($624.98 million) to 3.69 trillion SHIB ($88.7 million). This translates to an average decrease of 85.8%.

This decrease in activity by major players has impacted SHIB trading volume, leading to a thinning out of the market for meme-inspired cryptocurrencies. This could potentially explain the high volatility in SHIB price movements. However, as the whales return with volume, the price action of SHIB should become smoother and clearer.