Santiment, a leading blockchain analytics firm, reports a significant trend among the largest Shiba Inu holders. The top ten wallets notably reduced their coins from cryptocurrency exchanges, indicating medium- and long-term investment strategies and, as a result, an optimistic prognosis for the popular meme token.
Such a condition indicates that these whales will permanently maintain their Shiba Inu coins, a favorable sign for bullish traders. Since May 27, the overall number of Shiba Inu in the ten largest Shiba Inu wallets has decreased by 2.4%. This move demonstrates that the holder of the digital asset has high hopes for the total future Shiba Inu price and follows the bullish trend from the investors.
Read Also: Shiba Inu Coin Price Soars Amidst Burn Surge: Will It Hit $0.01 During Bull Run?
Similar Patterns Observed in Chainlink and Ethereum Holdings
The same has been witnessed in other cryptocurrencies, with Shad or Tez delegated tokens achieving this feat sometime back. According to Santiment, the same is true for others, such as Chainlink (LINK) and Ethereum (ETH), where the top 10 wallets have also decreased their exchange supply. For LINK, the decrease since May 27 is 2.9%, while ETH is a significant 8.6%. These reductions suggest that top holders are transferring their assets to private wallets for long-term holding, reflecting increased confidence in the future prices of these digital assets.
However, in the last seven days, there has been a dip in SHIB, ETH, and LINK prices despite the positive indications of the bulls. The reduction in SHIB was as follows: based on the statistics from Coinstats, the coin lost 15.1%, ETH by 8.2%, and LINK by 11.9%. In the last month, the price drop for SHIB was 7.6%, while ETH and LINK were up by 20.6% and 18. 4%, respectively. These performance metrics suggest that, despite short-term volatility, there are expectations of potential gains for ETH and LINK in the future.
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Increased Shiba Inu Burns Could Boost Demand
Also, the burn rate of SHIB is increasing, which means there is a good chance the demand for the second-largest memecoin by market cap is about to increase. A higher turnover in the burning of SHIB tokens also reduces the tiring supply, which, if complemented by high demand, could see an uptick in its value.
In conclusion, a decrease in the SHIB supply on exchanges by large addresses combined with the same processes concerning Chainlink and Ethereum indicates that the well-known coins have higher chances of price increase. The shift from short-term positions also points to a growing optimism regarding the long-run prospects of these digital assets. Other burn events continue to rise, particularly the newly launched Shiba Inu, indicating an increasing demand and value.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.