New data show that the Shiba Inu is endangered by centralization
New data from Santiment show big differences in the token distribution between the most important cryptocurrencies and provide important insights for dealers who observe the influence of whales.
The platform comparable The offer of the 10 largest wallets for various large cap assets values and covered strong contrasts in the degree of decentralization.
Shiba Inu (Shib) stands out among the analyzed assets as the most centralized. Massive 62% of the overall offer of Shib are held by only 10 wallets, which causes concerns about potential price manipulations or sudden market shocks if one or more whales decide for sale. Such a level of concentration makes Shib susceptible to volatility, which is driven by a handful of owners.
In contrast, USD Coin (USDC) and Chainlink (link) have a more balanced distribution of the offer. At USDC, a leading stable coin, there are only 27% of the offer in the hands of the ten most important wallets, which reflects a higher level of decentralization and a lower risk of abrupt price fluctuations. The top 10 Wallets from Chainlink keep 32% of the total offer, which also indicates a relatively healthy distribution for a large cap token.
For small investors and smaller traders, a lower WAL concentration generally signals a safer trading environment. For assets with decentralized property structures, it is less likely that they will experience dramatic rashes through coordinated whale actions. This is particularly important in times of increased market volatility when large movements of top owners can increase price stability.
The analysis of Santiment underlines how important it is not only to track the price trends, but also the activities of the whale wallets. Since the transparency on the chain increases, such data become a significant part of the duty of care for crypto investors who try to minimize the risk of a centralized offer.
Ultimately, meme coins like Shib can offer quick profits, but their whale dynamics warn for caution. In the meantime, assets such as USDC and Link seem more stable due to a broader distribution of the offer to the owners.
