SHIB Experience 841% Increase In Outflow, Whales Fingered

Shiba Inu (SHIB), has had a notable 841% increase in withdrawals lately, which has raised concerns about the future of SHIB. Significant losses have been experienced by SHIB’s price, which has dropped by a significant 96.69% in the last week as major holders appear to be pulling out of the market.

The timing of these occurrences has sparked concerns regarding SHIB’s viability and the actions of its major investors. SHIB has dropped almost 97% in the past seven days, confusing and worrying many investors regarding their holdings.

These holders are said to have moved 715.13 billion units of SHIB from their wallets on October 26. This accounts for an 841% surge in withdrawals, highlighting a discernible change in the actions of major SHIB investors.

News has it that the Large Holders Outflow, as published by IntoTheBlock, followed the outgoing funds to some selected unknown whales and some handful of big-time holders. Analysis on IntoTheBlock said that this sudden increase in SHIB outflows could only mean that there’s an intensive increase in whale’s withdrawal or selling activities.

Reason For The Outflow Explained: Whales Blamed

The coexistence of a significant price decline and a sharp increase in large SHIB holders’ outflows has generated discussions among analysts and cryptocurrency enthusiasts. Tomiwabold Olajide, a freelance cryptocurrency analyst, blames the sharp decline in price on the unwinding of leveraged positions and the shift in SHIB from large to smaller holders.

Some speculate that major holders might be redistributing their holdings among different cryptocurrencies or taking calculated risks in order to reduce risk. Recent market observation shows that SHIB has gradually started recouping its previous losses. However, data from CoinMarketCap shows that the SHIB now trades for $0.00000781.

At the time of the surge, the market capitalization for Shiba Inu was recorded at $4.58 Billion and has remained so in the past 24 hours. Also, in the last 24 hours, Shiba Inu recorded a total trading volume of $128.44 million. The token had a 1.13% decline in its total circulating supply of 589,346.91 billion.

Cryptocurrency Community Reacts, IntoTheBlock, Others Explain Recent Activity

SHIB had surged up to $0.00000825, which is a 2-month high as of October 26, when the market went on a bull run. SHIB had a profit-taking session; it attained its latest high, falling to $0.00000757 on October 27.

Big-time SHIB holders almost sold their assets at the time of intensive volatility due to the fear of liquidation. It also linked the huge outflows to the increased activities by SHIB’s biggest holders. Applying the NetFlow indicator, which is used for measuring the total shift in whale activities, confirmed the observation by IntoTheBlock.

As of press time, SHIB has experienced 96.69% negative reduction activity in the net flow of the large holders, which is a continuous indication of a decreased selling position. In other news, the subsequent increase in the price of SHIB has been linked to the ever-growing traffic in Shiba Inu’s Shibariu: Layer-2 protocol.

This development is said to have occasioned a sharp increase in the transaction, which has increased to 62,570 so far from its previous 12,690 count. In a recent post on the X platform by one of Shiba Inu’s team staff,  Lucie, who sent a message to Shibarium SHIB burners, that more steps need to be taken in structuring the system.