Whales Still Rule the Crypto Seas: Santiment Drops Alarming Data
Important insights for traders keeping an eye on whale influence are revealed by new data from Santiment that reveals significant variations in token distribution among the leading cryptocurrencies. The platform revealed considerable differences in the degree of decentralization between the supply owned by the top 10 largest wallets for different large-cap assets.
Is Shiba Inu at Risk? Whale Dominance Sparks Fears of Price Manipulation
The asset that is most centralized among those that have been examined is Shiba Inu (SHIB). Just ten wallets hold 62% of SHIB’s total stock. Concerns over possible price manipulation or unexpected market shocks in the event that one or more whales decide to sell are raised by this circumstance. SHIB is susceptible to volatility caused by a small number of holders due to its high degree of concentration.
USD Coin (USDC) and Chainlink (LINK), on the other hand, exhibit a more evenly distributed supply. The ten most popular wallets hold only 27 percent of the supply of USDC, a popular stablecoin. This suggests greater decentralization and less chance of abrupt price swings. The fact that 32% of Chainlink’s total supply is held by its top 10 wallets suggests that, for a large-cap coin, the distribution is comparatively sound.
Santiment Highlights the Hidden Risks of Centralized Crypto Supply
The significance of monitoring whale wallet activity in addition to price changes is shown by Santiment’s findings. Such information becomes a crucial part of due diligence for cryptocurrency investors looking to reduce their exposure to centralized supply risks as on-chain transparency rises.
In the end, even though meme coins like SHIB could yield quick profits, care must be taken due to their whale dynamics. In the meantime, a wider distribution of supply among investors makes assets like USDC and LINK seem more stable.
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