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- A Shiba Inu whale holding over 10% of the token supply has sparked concerns about market concentration.
- On-chain data shows a decline in SHIB transaction volumes and reduced whale activity.
Blockchain data has revealed that a single investor holds over 10% of the total Shiba Inu (SHIB) token supply. This investor, known by the wallet address “0x1406,” has been able to amass 103 trillion SHIB tokens, which were purchased between the months of August and October of 2020. It was bought for 38 ETH, and at that time ETH was valued at $10,000.
8/ It’s remarkable to see this whale still holding the vast majority of his $SHIB holdings since his first purchase—10% of the total supply!https://t.co/Ly533AGw8M pic.twitter.com/ulsBZwgbmI
— Bubblemaps (@bubblemaps) November 19, 2024
This stake has increased dramatically, and as of now, the company’s holdings are estimated to be worth about $2.5 billion. It reached as high as $5 billion, which makes it one of the biggest trades in the cryptocurrency market. Such a situation has created concerns about market manipulation, given the high levels of ownership concentration.
According to the blockchain visualization tools, the whale first collected all the tokens into one address and then transferred them into 14 different wallets in late 2021. The holdings were later split across about 150 separate addresses, a strategy that could be interpreted as both risk diversification and anonymity preservation.
Speculation Surrounding Wallet Ownership
The activities of the mysterious whale have created speculations on their identity. Others have speculated the wallet may be linked to Ryoshi, the anonymous founder of the Shiba Inu token, who left the public domain in 2021. This theory is similar to the anonymity that is exercised by the developer of Bitcoin, Satoshi Nakamoto.
Although there is no clear proof of this theory, the professional management of the assets points to the work of a well-informed strategist. The wallet has been less active, and the majority of the funds still remain in it while the prices of SHIB have been changing significantly.
Lower Transaction Volumes
Shiba Inu (SHIB) has been unable to sustain the gains it has made recently and is currently experiencing a lack of push in price. According to on-chain data, a sign of reduced activity has been observed in the form of a 14.84 trillion SHIB transaction volume within the last 24 hours. This is slightly lower than the seven-day high of 21-23 trillion SHIB witnessed on 14th November 2024.
Whale activities, which have been a major factor in SHIB’s previous rallies, have also decreased significantly, which has affected its current performance. Lower major transactions suggest that large investors may be easing out of their holdings.
Similarly, trading metrics correlate with these trends as the RSI indicates that overbought levels have been reached. From the SHIB/USDT chart, it is clear that the asset is still fighting to break past the $0.000025 resistance level. The recent price pullback has brought SHIB to the $0.000024 support level.
A successful defence of this level could open the door for a comeback. However, a breach might lead to a more profound correction, which may challenge the $0.000021 support area. This is because large scale ownership is a threat to decentralized tokens. The sale of even a part of those holdings could put a great deal of pressure on SHIB’s price.
