Shiba Inu Faces 62% Centralization Risk, Whales Control Majority

Shiba Inu, a prominent cryptocurrency, is currently grappling with significant centralization risks. As of July 2025, the top ten wallets control an alarming 62% of the total supply, a level of concentration that is unusually high compared to other major cryptocurrencies. This dominance by a small number of large holders, or "whales," raises serious concerns about market risk and the potential for price manipulation.

The high level of centralization in Shiba Inu's supply presents a risk of volatility and manipulation, prompting market speculation without addressing concerns. The anonymity of Shiba Inu's founders persists, with no official comments on this centralization. Market participants are aware of potential risks due to the concentration. The crypto community is concerned, but no leadership communication is evident. Price volatility is expected as whale movements influence the market. There's anxiety over an abrupt market impact should these holders decide to trade their large shares.

Historically, whale-dominated assets have experienced significant price fluctuations. Similar situations in early crypto markets illustrated the fragility of such ecosystems. "Such centralization increases tail risks and price shock potential." - Santiment, On-chain Analytics Provider. Should these conditions persist, analysts suggest potential market instability, similar to past events with moon-shot tokens, impacting meme coin investments broadly.

Market analysts warn of the elevated threat of price manipulation due to centralized holdings. The concentration of holdings in the hands of a few large investors can also limit the ability of smaller investors to influence the market, further exacerbating the centralization risk. As the cryptocurrency market continues to evolve, it is crucial for projects like Shiba Inu to address these issues and promote greater decentralization to build trust and confidence among investors.