According to IntoTheBlock's data, the outflow of large holders of Shiba Inu (SHIB) reached 2.75 trillion SHIB in just the past day. This movement is part of a larger trend, with the total volume of large transactions of SHIB reaching 6.37 trillion SHIB in the past 24 hours.
The outflow of 2.75 trillion SHIB has increased by 754% over the past seven days. In contrast, the inflow of large holders (funds flowing into whale addresses) reached 1.9 trillion SHIB in the past 24 hours, increasing by 133% weekly. High trading volume typically indicates increased activity among whales, with Shiba Inu increasing by 55.81% in the past 24 hours. The increase in outflows aligns with this week's general sell-off in the cryptocurrency market, which may have prompted large SHIB holders to transfer significant amounts of tokens.
As of the time of writing, SHIB has dropped 23.28% in the past 24 hours to $0.00001874. The ongoing sell-off may explain why outflows significantly exceed inflows. With the prevailing market sentiment leaning bearish, the substantial outflows indicate that some whales may be cashing out amid broader market uncertainty.
Implications
IntoTheBlock's large holder outflow tracks the capital outflows from significant holder addresses.
Large holder outflows help identify moments of panic. A surge in outflow may indicate two things: a sell-off from whale addresses or withdrawals from exchanges. Withdrawing from exchanges may be for security reasons, such as transferring to cold storage, which is considered bullish.
During periods of extreme volatility, large holders may be more likely to sell assets to avoid liquidation. However, since exchanges are one of the largest holders, significant outflows often represent funds leaving the exchanges. The good news is that Shiba Inu has partnered with Chainlink, allowing its ecosystem tokens SHIB, BONE, and LEASH to adopt the CCT standard. Shibarium has also adopted Chainlink's CCIP as its standardized cross-chain infrastructure and low-latency market data stream.