Shiba Inu Loses 16.388% as Whale Activity Drops 100%

Shiba Inu (SHIB) faced a notable market downturn in early August 2025, with a 16.388% price decline attributed to sharply reduced whale activity. On-chain data reveals a 100% drop in $1M–$10M whale transactions, indicating a complete withdrawal of major holders from the asset [1]. This exodus has significantly impacted liquidity and market stability, with retail trading volumes failing to compensate for the absence of institutional-level participation [1]. The overall market environment has further worsened, as liquidity pressures and reduced attractiveness for traders become evident.

The situation is compounded by a lack of communication from key project figures, including lead developer and spokesperson Shytoshi Kusama, who has not made any public comments during this period of volatility [1]. This leadership silence has left the community and broader market without guidance or reassurance, contributing to heightened uncertainty. Historically, similar patterns of whale withdrawals and low retail momentum have led to extended periods of price stagnation and inactivity [1]. Without significant market catalysts or speculative hype, a recovery appears unlikely in the near term.

Market analysts suggest that the broader crypto landscape is shifting away from speculative assets like SHIB, with capital increasingly flowing toward tokens offering real-world utility and tangible use cases [2]. This trend aligns with a growing industry preference for projects that demonstrate clear adoption potential and practical applications, such as PayFi tokens facilitating cross-border transactions [2]. As a result, SHIB remains at risk of further decline without a compelling value proposition or ecosystem innovation [2].

While some speculate that whales are accumulating approximately 400B SHIB as a potential bottoming signal, these claims remain unverified and lack on-chain confirmation [2]. Analysts emphasize the importance of distinguishing between speculative forecasts and verified data, noting that any recovery is likely to depend on unpredictable macroeconomic and regulatory developments [3]. In the current market environment, traders are increasingly favoring assets with stronger fundamentals and clearer utility [2].

The coming weeks will be crucial in determining whether SHIB can stabilize or continue to lose relevance. Without leadership engagement or ecosystem advancements, the token remains highly vulnerable to ongoing downward momentum in an increasingly competitive crypto market [1].

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/)