A massive Shiba Inu whale has moved over 91 billion $SHIB into a wallet belonging to the popular Indonesian cryptocurrency trading platform Indodax, at a time in which the meme-inspired cryptocurrency’s price has been dropping, amid a wider crypto market rout.
According to data from the Ethereum blockchain, a whale with over $4.5 million worth of digital assets in its wallet has recently moved nearly 92 billion tokens, worth around $1.1 million, to the cryptocurrency, presumably to dump the tokens.
The transaction came at a time when the price of the meme-inspired cryptocurrency has been steadily falling after rallying over 50% year-to-date. Over the past week, SHIB’s price has dropped by more than 8%.
The whale’s transaction was made to a wallet associated with Indodax, an Indonesian cryptocurrency exchange, and given the timing, it’s presumed the whale sold off its SHIB tokens. In its wallet, it still holds 296 million Polygon ($MATIC), worth over $360,000, and 55 million Smooth Love Potion ($SLP), worth over $180,000.
Notably, most Shiba Inu investors have shown they aren’t planning on selling en masse, as the median time that users on Coinbase hold onto the meme-inspired cryptocurrency before either selling it or moving it to an external address has surpassed the 230-day mark.
The number of Shiba Inu holders has been growing ahead of the expected launch of Shibarium. This upcoming layer-2 solution aims to improve the Shiba Inu ecosystem by providing faster transactions at a lower cost, among other important improvements. However, there are still many questions surrounding the release and utility of Shibarium.
Shibarium will work alongside Ethereum to process transactions on the Shibarium ecosystem. It will take a large cut of the transaction load the Shiba Inu ecosystem currently brings onto Ethereum to process it on the Shibarium chain.
Further, the layer-2 will remove tokens from circulating to reduce supply and help boost the price. This is known as a token burning mechanism, in which tokens are sent to wallets that can only receive tokens but not send them, also called Dead Wallets. Shibarium will burn $SHIB and require $BONE for transactions.
Featured image via Pixabay.