According to the latest data from online analytics platform IntoTheBlock, the leading canine-themed meme token, Shiba Inu (SHIB), saw its transaction volume plummet by 88.09% on 18 June.
SHIB continues not only to experience sharp price swings, but also its underlying trend in the blockchain has taken a hit, as the cryptocurrency market remains tense and the values of major cryptocurrencies continue to decline under constant volatility.
Whales' Assets Falling: SHIB Scores a 90% Collapse
ShIB investors with at least $100,000 in tokens in their portfolios experienced an 88.09% decrease in net token flow over the past day, dropping to just $23.36 million.
The volume of large SHIB transactions fell by around 90% in just two days, despite having peaked weekly on 16 June at $196.15 million.
Although this comes against a backdrop of outright 'slaughter' in the crypto market, the decline in large transactions in the SHIB ecosystem today indicates a decrease in trading activity by 'whales' or institutional investors, both buying and selling.
This on-chain statistic shows a decline in investor interest, as whales are no longer aggressively buying tokens after the market's recent negative performance, although they typically do so during consolidation or down phases.
Holders now doubt the possibility of a SHIB price breakout after the current selling phase, due to the unfavourable trend in both price and on-chain activity.
While Bitcoin has reached significant highs over the past month, traders are closely watching for signs of a potential downward reversal.
However, the drop in large SHIB transaction volumes suggests that investors are no longer willing to accumulate large amounts of the token, a sign that bearish sentiment towards SHIB is gradually emerging.
Curiously, this sharp drop in whale activity could also indicate a wait-and-see approach by institutional investors, waiting for clearer signals before re-entering the market. Some analysts argue that reductions in whale movements often precede reversals, especially when retail trading remains active.
Despite the decrease in activity on the network, SHIB's price has remained stable over the past day, sparking further interest among its holders.
According to CoinMarketCap data, SHIB's price has risen slightly over the past 24 hours, up 0.75 per cent. At the time of publication, the token is trading steadily at around $0.00001170.
