Recent on-chain data analysis reveals that Shiba Inu (SHIB) ranks highest among leading cryptocurrencies in terms of supply centralization, with its top ten whales controlling a staggering 62% of the supply. This level of concentration outstrips other popular crypto assets such as Ethereum (ETH) and Pepe (PEPE).
The on-chain analytics firm, Santiment, in a fresh publication, detailed the supply concentration levels of various cryptocurrencies, including Shiba Inu, Ethereum, Pepe, USDT, USDC, DAI, Chainlink (LINK), and Uniswap (UNI).
The graph illustrates that USDC, a stablecoin, has the lowest supply concentration in the top 10 wallets, around 27%. Chainlink and DAI follow suit with supply centralization levels at 32% and 33%, respectively. Conversely, Uniswap and Ethereum exhibit high levels of centralization, with 51% and 49% of their respective supplies held by the top 10 wallets.
However, Shiba Inu proves to be the most centralized, with the top ten whales holding an enormous 62% of the total supply. Comparatively, Pepe, another memecoin, has a supply centralization of 39%.
For any cryptocurrency, a high level of supply centralization is generally viewed as a negative indication for stability, given that tokens represent power within the network. This is particularly relevant for proof-of-stake (PoS) assets like Ethereum.
Santiment cautions retail traders that it is often safer to hold coins with less supply held by the top whales. This mitigates the risk of sudden price drops or market manipulation should these whales decide to liquidate their positions.
Given this, cryptocurrencies like Ethereum, Uniswap, and especially Shiba Inu, which have a significant proportion of their supply in the hands of the top ten whales, may currently be in a precarious position.
In related news, the cryptocurrency market sentiment is nearing extreme greed, as per the Fear & Greed Index. This index computes a score ranging from zero to hundred based on various factors to gauge investor sentiment. Currently, the index stands at a substantial 73, indicating a strong presence of greed among traders.
Historically, market movements have often defied crowd expectations, particularly at the extreme ends of the index. While the market is not yet in the extreme greed zone, it is teetering on the edge.
At the time of writing, Shiba Inu’s price stands at approximately $0.0000115, rising over 3% in the past week.
