New blockchain information shows that large investors remain in control of the Shiba Inu crypto market

Today's $1K XRP Bag May Become Tomorrow's Jackpot, Crypto Founder Says

This article is part of a paid collaboration with Gemini.

Get 10 free trades with a new Gemini account. Use code GEMINI10.

Shiba Inu’s price has remained relatively stable despite regular trading activity, with new blockchain information showing that large investors remain in control of the meme coin.

Over 74% of Shiba Inu’s 95 billion circulating tokens are held by large addresses, according to blockchain tracking site IntoTheBlock. This high concentration puts the token’s ecosystem in the hands of a few wealthy investors, who could potentially influence its price.

The concentration among large holders sends contradictory signals to the market. Some analysts interpret it as a confidence vote for SHIB’s future, while others see it as a double-edged sword that creates an unstable environment.

The big players would set off cataclysmic price fluctuations should they wish to liquidate their assets, especially considering that any rapid movement in such a concentrated market could be destabilizing.

Shiba Inu: A Tale Of Rich Investors And Minimal Change

Shiba Inu has been showing little change in recent days, with a current price tag of $0.00001226 and less than 1% daily change. Despite this, the token has seen regular trading activity, with over $120 million in SHIB trades (each over $100,000) done in the last week.

The volume of transactions provides a glimpse into institutional and whale-scale activity on the platform, a market analyst disclosed. The ongoing high-value transactions indicate sustained interest among large investors, even as the price remains flat.

This configuration poses both a reassurance and a risk for smaller investors. The investment from such huge investors could provide comfort to retail traders about the token’s stability and long-term potential.

However, this setup also carries significant risk. Any abrupt change of position by these large holders can induce rapid and steep price action. Market watchers point out that when the ownership is so concentrated, even normal portfolio rebalancing by a handful of large holders can make a huge market disturbance.

In the crypto market, whale activity is usually a precursor to significant market action, hence it is closely monitored by the crypto community. With over 70% of the SHIB token in the hands of a few rich investors and $120 million in recent high transactions, many will be watching to see if there are any reversals in sentiment from such powerful hands.