Data on the chain show that Shiba Inu (ShIB) has its offer more focused on the largest holders than other assets such as Ethereum (ETH) and Pepe (Pepe).
Shiba Inu has checked 62% of its offer by top 10 whales
In a new one after On X, the on-chain analytics company Santiment has shared how some top coins are currently relating to each other in terms of the percentage of offer that is held by the ten largest portfolios on the respective networks.
Below is a graph that shows the trend in this metric for eight cryptocurrencies: Shiba Inu, Ethereum, Pepe, USDT, USDC, DAI, Chainlink (link) and Uniswap (Uni).
As visible in the graph, the Stablecoin USDC has the lowest amount of delivery concentrated on the top 10 addresses between these assets by approximately 27%. Chainlink and Dai come close to the metric that is 32% and 33% respectively.
However, others such as Uniswap and Ethereum have a larger part of their offer under the control of these gigantic entities: 51% and 49% respectively.
An asset that stands out in particular is Shiba Inu, with a huge 62% of its range of the ten largest whales on the network. For comparison: the other memecoin on the list, Pepe, has the same statistics at 39%.
In general, the centralization of the offer on just a few hands is not a constructive sign for the stability of each cryptocurrency, because tokens mean the electricity on the network. It is especially relevant in the case of an assets of proof-of-stake (POS) such as Ethereum.
As santiment explains,
As a retail trader, it is generally safer to keep coins with less supply in the hands of the most elite whales. There is less risk of sudden dumps or price manipulation if the biggest whales of active decisions to leave their positions.
In view of this, the assets such as Ethereum, Uniswap and Shiba Inu are currently a majority of their stock or are close to the top 10 whales may not be in the best position.
In another news, sentiment for cryptocurrency market is about to be extreme greed, according to the Fear & Greed Index. The Fear & Greed Index is an indicator created by Alternative This introduces a few different factors to determine the investor’s mentality as a score between zero and a hundred.
As shown above, the Cryptocurrency Fear & Greed currently has a value of 73. This corresponds to the presence of a strong sentiment of greed that is present among traders.
Historically, markets have often entered the direction that is contrary to the expectations of the crowd. The chance of an opposite movement is particularly strong at the extreme ends of the index. For now, the market is still outside the extreme greedy zone, but only through a few units.
Shib -Price
At the time of writing, Shiba Inu trades around $ 0.0000115, an increase of more than 3% in the last seven days.
Featured image of Dall-E, alternative.me, Chart van TradingView.com