Shiba Inu Supply 62% Controlled by Top 10 Whales

On-chain data reveals that Shiba Inu (SHIB) has a more concentrated supply among its largest holders compared to other assets such as Ethereum (ETH) and Pepe (PEPE). According to a recent post by the on-chain analytics firm Santiment, Shiba Inu has 62% of its supply controlled by the top 10 whales, making it the most centralized among the top coins. This high level of concentration raises concerns about the stability and potential for price manipulation of the cryptocurrency.

In comparison, other assets like USDC, Chainlink, and DAI have a lower percentage of their supply held by the top 10 addresses, with USDC having the lowest at around 27%. Ethereum and Uniswap also have a significant portion of their supply under the control of these large entities, with 49% and 51% respectively. Pepe, another memecoin, has 39% of its supply held by the top 10 whales, which is still lower than Shiba Inu's 62%.

The centralization of supply in the hands of a few large holders is generally seen as a negative sign for any cryptocurrency's stability. This is particularly relevant for proof-of-stake (PoS) assets like Ethereum, where tokens signify power on the network. Santiment explains that retail traders are generally safer holding coins with less supply concentrated in the hands of elite whales, as there is less risk of sudden dumps or price manipulation.

Given this analysis, assets like Ethereum, Uniswap, and Shiba Inu, which currently have a majority or close to a majority of their supply in the hands of the top 10 whales, may not be in the best position. The high concentration of supply in Shiba Inu raises concerns about its stability and potential for price manipulation, which could impact its long-term viability as a cryptocurrency. Retail traders and investors should be aware of these risks when considering investments in Shiba Inu or other highly centralized cryptocurrencies.