New Data Shows Shiba Inu is at Risk Due to Centralization

New data from Santiment highlights major differences in token distribution among top cryptocurrencies, revealing critical insights for traders monitoring whale influence.

The platform compared the supply held by the top 10 largest wallets for various large-cap assets, uncovering stark contrasts in decentralization levels.

Shiba Inu (SHIB) stands out as the most centralized among the analyzed assets. A massive 62% of SHIB’s total supply is held by just 10 wallets, raising concerns about potential price manipulation or sudden market shocks if one or more whales decide to sell. Such a high level of concentration makes SHIB vulnerable to volatility driven by a handful of holders.

In contrast, USD Coin (USDC) and Chainlink (LINK) demonstrate more balanced supply distributions. USDC, a leading stablecoin, has only 27% of its supply in the hands of its top 10 wallets, reflecting a higher level of decentralization and reduced risk of abrupt price movements. Chainlink’s top 10 wallets hold 32% of its total supply, also indicating relatively healthy distribution for a large-cap token.

For retail investors and smaller traders, lower whale concentration generally signals a safer trading environment. Assets with decentralized ownership structures are less likely to experience dramatic swings caused by coordinated whale actions. This is especially critical during times of heightened market volatility, when large movements by top holders can amplify price instability.

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Santiment’s analysis underscores the importance of tracking whale wallet activity, not just price trends. As on-chain transparency increases, such data becomes an essential component of due diligence for crypto investors seeking to minimize exposure to centralized supply risks.

Ultimately, while meme coins like SHIB may offer rapid gains, their whale dynamics demand caution. Meanwhile, assets like USDC and LINK appear more stable due to broader supply distribution across holders.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.