The price of Shiba Inu (SHIB) has been facing a continuous downtrend since the beginning of the month. It has fallen as much as 20% from the yearly open, reaching a low point of $0.000008735 on January 8th. Although there has been a recovery of 15% since then, with SHIB currently trading at $0.000009763, the price still shows signs of decline, down 3.3% in the past 24 hours.
Whale Accumulation and Cold Storage
Despite the ongoing price decline, some Shiba Inu whales have been actively accumulating SHIB tokens. On-chain data reveals that these whales have accumulated an enormous 2.39 trillion SHIB tokens, which amounts to approximately $24.15 million. These tokens have been sent straight to cold storage, which refers to digital wallets that are not owned by crypto exchanges. Cold storage renders the SHIB tokens inaccessible for trading or selling, indicating a long-term holding intention by the whales.
Shiba Inu’s ecosystem is known to accommodate many whale investors, making it not uncommon to witness significant transactions among them. Lookonchain, an on-chain transaction tracker, reports that there have been notable SHIB transfers from the crypto exchange Binance to four different whale addresses in the past 30 days. One of these recent transactions involved the accumulation of 136.86 billion SHIB tokens, worth $1.38 million, into a newly created wallet. It is worth mentioning that this accumulation was the smallest of the four whale transactions.
The other three whale transactions involved larger proportions, with Justin Sun, the founder of TRON, accumulating 577 billion SHIB worth $5.82 million from Binance. The third whale address, 0xa656, accumulated 237.87 billion SHIB worth $2.4 million. The largest accumulation came from address 0xF633, with a staggering 1.44 trillion SHIB worth $14.54 million accumulated from both Binance and Gateio.
According to data from IntoTheBlock, large SHIB holders now possess 78% of the total circulating supply. This concentration of tokens in the hands of a few individuals can potentially enable price manipulation to their advantage. However, the significant buys executed by these whales indicate their confidence in the long-term prospects of SHIB, despite recent market volatility.
Shytoshi Kusama, the lead developer of Shiba Inu, took to social media to encourage the growing SHIB community to remain steadfast. This call came in response to the introduction of Shib name tokens and aimed to emphasize the development of a Network State. Simultaneously, efforts to drive up the price of SHIB have been witnessed through a recent spike in the burn rate, with a staggering increase of 395.43%.
Education and Disclaimer
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While the price of SHIB continues its downtrend, Shiba Inu whales have taken advantage of the dip to accumulate a substantial amount of SHIB tokens. Their move to cold storage indicates a long-term holding strategy. Despite concerns of market manipulation due to the concentration of tokens among large holders, the confidence displayed by whale investors suggests a positive outlook for the future of SHIB.