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Shiba Inu (SHIB) has experienced a dramatic and unprecedented drop in whale activity, with all $1M–$10M transactions ceasing entirely in early August 2025. On-chain data indicates a complete withdrawal of high-value participants from the market, with a 100% decline in such transactions [1]. This absence has significantly weakened SHIB’s liquidity and market presence, contributing to a potential price drop of approximately 16.388% and a broader market pullback in the past week [1]. The absence of large-scale holders has also led to stagnant trading volumes and liquidity pools, with retail activity failing to compensate for the loss [1].
The decline in whale activity has raised concerns about the future trajectory of SHIB. Analysts suggest that such a withdrawal typically signals a period of market stagnation, especially when not accompanied by strong retail demand or significant ecosystem developments [1]. Historical patterns show that previous whale exits have often led to prolonged periods of inactivity or consolidation, with no immediate price recovery unless new catalysts emerge [1]. While some speculative reports claim that whales may be purchasing approximately 400B SHIB as a sign of bottoming behavior, these claims remain unverified and are not supported by concrete on-chain evidence [2].
The broader crypto market context further complicates the outlook for SHIB. Altcoins have faced renewed scrutiny as investors shift capital toward projects with clear utility and real-world adoption, such as PayFi tokens offering cross-border payment solutions [2]. This trend reflects an industry-wide shift toward more tangible value propositions, leaving speculative tokens like SHIB vulnerable to continued downward pressure [2].
Notably, SHIB’s leadership and key figures have not issued any official statements or responses to this whale exodus, despite growing community discussions and on-chain analysis. This lack of transparency has left the market in a state of uncertainty, with no clear signals about future developments or potential interventions [1]. The absence of official guidance contrasts with the heightened activity seen in other parts of the crypto ecosystem, where projects are actively expanding their use cases and infrastructure [1].
While the long-term outlook for SHIB remains unclear, analysts caution that any recovery would likely depend on both macroeconomic conditions and regulatory developments—both of which remain unpredictable [3]. For now, the market appears to be in a consolidation phase, with traders redirecting attention to assets offering clearer utility and stronger fundamentals [2]. The coming weeks will be crucial in determining whether SHIB can regain traction or if it will continue to lose ground in the increasingly competitive crypto landscape [2].
Source:
[1] Shiba Inu: Whale Movements Amid 4 Trillion SHIB Futures ... (https://www.eblockmedia.com/news/articleView.html?idxno=25166)
[2] Crypto Market Pullback Sees Traders Dump DOGE And ... (https://blockchainreporter.net/crypto-market-pullback-sees-traders-dump-doge-and-shib-for-this-rising-payfi-ecosystem-coin/)
[3] Analyst Predicts Recovery as Whales Purchase 400B SHIB ... (https://m.facebook.com/manuel.guevarra.369210/photos/shiba-inu-price-prediction-analyst-predicts-recovery-as-whales-purchase-400b-shi/735575212689023/)

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