Shiba Inu Dominance Drops to Three-Month Low as USD Value Remains High
Shiba Inu's dominance among the 1,000 largest Ethereum wallets has dropped to a three-month low with only 5% dominance and $1.7 billion remaining on whale-tier wallets.
Asset'ss dominance among whales
Shiba Inu has always been one of the most dominant assets among whale addresses, with its dominance reaching 12% at the point that SHIB reached its most recent ATH. Following the correction on the market, short-term traders and some whales have begun to sell their assets to avoid losses.
The next wave of buying power appeared after the most recent recovery of the token. Starting from Dec. 20, the asset's price has faced a 25% increase in less than a week, but unfortunately for investors, it retraced by approximately 15% after.
Reasons behinds dominance in drop
The main reason behind the drop in dominance is the distribution of funds on the market, with the majority of investors moving their funds to smaller altcoins or even stablecoins in order to preserve them during the correction of the cryptocurrency market.
According to the tracker's data, the majority of funds currently remain in the "other tokens" category with 10% of all whales' capital. The only token behind Shiba Inu is FTX token with $1.5 billion of whales' funds sitting in the exchange's utility token. The two categories following behind Shiba and FTX are the USDC and USDT tokens with a capitalization of $1.6 billion in all.
At press time, SHIB is trading at $0.000034 and showing completely neutral price action after a 12% correction. In the last four days, Shib's price changed by 2% only.Source