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TL;DR
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Shiba Inu leads in centralization: a setup that poses risks of sudden price swings and contradicts crypto’s decentralized ideals.
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SHIB shows mixed signals, as its price dips while burn activity surges by over 4,000% and tokens steadily flow out of exchanges, hinting at reduced sell pressure ahead.
SHIB is the Most Centralized?
According to a recent study conducted by Santiment, Shiba Inu’s top 10 wallets control a whopping 62% of the meme coin’s circulating supply.
The self-proclaimed Dogecoin-killers ranked first in that statistic, while the biggest stablecoin, USDT, came in second with 51.8%. Ethereum (ETH) is third, with its top 10 holders owning 49% of the supply, whereas PEPE is next with 39%.
SHIB might lead on this front, but that doesn’t necessarily mean that its investors and proponents should pop the champagne and celebrate. Controlling a significant portion of the supply contradicts the decentralized spirit of the crypto industry.
Additionally, this makes the asset more vulnerable to substantial price changes due to potential massive sell-offs or accumulation efforts.
“As a retail trader, it’s generally safer to hold coins with less supply held by the most elite whales. There is less risk of sudden dumps or price manipulation should an asset’s largest whales decide to exit their positions,” Santiment warned.
SHIB Price Outlook
As of this writing, the price of the meme coin stands at around $0.00001159, which is a 3% decrease for the past day. Its market capitalization has slipped to just under $7 billion, making SHIB the 24th-biggest cryptocurrency in the entire market.
Essential metrics, however, suggest that the price may be gearing up for a renewed rally. In the last 24 hours, the Shiba Inu team and community have burned over 13.4 million tokens, representing a 4,000% increase compared to the figure observed on July 3.
The ultimate goal of the burning mechanism is to reduce the supply of SHIB and potentially increase the asset’s value through scarcity.
Next on the list is the decreased supply of Shiba Inu tokens on centralized exchanges. Over the past month, there has been an evident shift from such platforms toward self-custody methods, which reduces the immediate selling pressure.
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