Data from the market information platform IntoTheBlock shows that Shiba Inu Whales have been selling their holdings over the past 30 days. This development is likely due to several factors, including the meme coin’s unimpressive price action in recent times.

Shiba Inu whales shrinking their habitat

Facts from IntoTheBock shows that Shiba Inu Whales have reduced their holdings over the past 30 days. More specifically, there has been a more than 6% decrease in holdings of investors holding between $100,000 and $1 million in SHIB. Additionally, there has been a more than 3% and 7% decrease in holdings of whales holding between $1 million and $10 million in SHIB and $10 million in Shiba Inu tokens, respectively.

This pessimistic sentiment among Shiba Inu Whales appears to have increased over the past seven days as the net flow from large holders has dropped by over 670%. A drop in this metric indicates that these investors are selling off their tokens instead of accumulating more. Meanwhile, it is also worth noting that large transactions have dropped by almost 5%

Shiba Inus unimpressive price action can be pointed out as one of the reasons why these whales sold their tokens. The second largest meme coin has dropped by more than 7% and 14% in the past seven and thirty days, respectively. While the meme coin’s downtrend can be attributed to Bitcoin’s decline, it is worth noting that Shiba Inu has sometimes failed to recover even when the flagship crypto recovered.

It is also thought that these whales are cutting their losses as Shiba Inu is still at risk of further declines. Data from IntoTheBlock shows that most current holders of SHIB bought the meme coin while it was above $0.00002so it is understandable that these investors are applying risk management, to see how far the meme coin is from that price level.

SHIB adoption has stagnated

Facts from IntoTheBlock shows that Shiba Inu adoption has been quiet for a while now. This means that the meme coin is no longer witnessing an influx of new investors as it used to. This is undoubtedly worrisome, given how this category of investors helps to bring in new money and bring about price increases.

Shiba Inu seems to be suffering the same fate as Dogecoin, which is network activity the last three months remain flat, with the number of new addresses also decreasing. A plausible explanation is that meme coin traders currently like the newer meme coins, as they are likely to yield higher returns than Dogecoin or Shiba Inu.

As a crypto analyst Altcoin Sherpa noticedMajor cap meme coins like Dogecoin and Shiba Inu are likely to only make a few price gains in this bull run and are only suitable for whales who can invest a significant amount. This explains why 73% of Shiba Inu’s supply is currently concentrated in the hands of these whales.

At the time of writing, Shiba Inu is trading at around $0.00001412, up over 6% in the past 24 hours, according to facts from CoinMarketCap.

Main image created with Dall.E, chart from Tradingview.com