What Happened to Shiba Inu and Why Did Its Price Decline

The Shiba Inu's price decline was a dramatic event that left many investors wondering what went wrong. The Shiba Inu's price peaked in October 2021, reaching an all-time high of $48.48.

The Shiba Inu's price decline can be attributed to a combination of factors, including a decline in investor interest and a decrease in trading volume. The Shiba Inu's market capitalization also decreased significantly, from over $40 billion to under $10 billion.

As the price of Shiba Inu declined, many investors were left holding the bag, with some losing significant amounts of money. The Shiba Inu's price decline was a reminder that investing in cryptocurrency is a high-risk, high-reward endeavor.

Shiba Inu prices briefly fell 50% on Coinbase in early Asia morning hours on Tuesday, a rare occurrence that usually happens when a sell order exceeds the available market depth.

Spot SHIB volumes crossed $1.7 billion on Coinbase in the past 24 hours, the most among counterparts, indicating significant trading activity.

The price drop was an anomaly, as SHIB prices fell to an average of $0.000036 on other exchanges, such as Bybit and Kraken.

This unusual move was likely caused by the whales, who deposited 4.29 trillion SHIB tokens on the Coinbase exchange over the past day, worth around $97.33 million.

These investors had accumulated their SHIB holdings in September 2021 and March 2024 at an average price of $0.00001309, and are now selling their tokens for a profit of around $41.22 million.

The selling pressure from these whales has contributed to the drop in SHIB prices, which have lost almost a quarter within a day.

Here's a breakdown of the SHIB price drop:

Shiba Inu (SHIB) prices briefly fell 50% on Coinbase, a U.S. exchange.

This unusual move occurred in early Asia morning hours on Tuesday, before returning to normal.

Such drops usually occur when a sell order exceeds the available market depth.

SHIB prices slipped from $0.000044 to $0.000022 on Coinbase amid a bitcoin-led sell-off among major tokens.

Prices fell to an average of $0.000036 on other exchanges, such as Bybit and Kraken, marking the Coinbase drop as an anomaly.

The market depth on Coinbase was $1.2 million, which is relatively low compared to the $1.7 billion in spot SHIB volumes that crossed on the exchange in the past 24 hours.

The sell-off was part of a broader crypto market volatility, with the CoinDesk 20 index (CD20) up 3% in the same time frame.

Explore further: When Will Shiba Inu Hit 1 Cent

Shiba Inu prices briefly fell 50% on Coinbase due to a sell-off, but that's not the only reason they're dropping.

Large investors, known as whales, have been selling their SHIB holdings, causing a significant sell pressure on the market. These whales deposited 4.29 trillion SHIB tokens, worth around $97.33 million, on Coinbase over the past day.

The whales accumulated their SHIB holdings in September 2021 and March 2024 at an average price of $0.00001309, making a profit of $41.22 million if they sold all at the current price.

SHIB is currently trading at $0.0000215, which is a significant drop from its previous price. This sell pressure has worsened the decline, resulting in SHIB losing almost a quarter of its value within a day.

The market capitalization of SHIB has dropped to about 12.6 billion dollars, a significant decrease from its previous value.

Here's a breakdown of the whale's SHIB holdings:

The selling pressure on Shiba Inu has been decreasing, which could lead to a price increase in the coming week.

This is according to recent on-chain data, which shows that the yearly average of active addresses at the money is now shifting towards wallet addresses that are at the money, making up almost 74.6% of the buying and selling action.

The "at the money" status of these traders doesn't give a clear indication of their actions, as they could either be selling or increasing their holdings at the current price.

Interestingly, the year-to-date activity average of addresses that are "in the money" has fallen below 18%, indicating they might be opting to hold right now to increase their unrealized profits.

A substantial amount of SHIB has moved out of the hands of short-term holders, contributing to a drop in selling pressure, with about 4% of the entire circulating supply moving to mid-term holders in the past week.

Mid-term holders hold their assets for more than a month to a year, in contrast to short-term holders, who are known for holding for less than a month before selling.

Search queries for Shiba Inu's price have been modest compared to 2021 levels, with globally searches for 'Shiba Inu coin' at just 12% of what they were at the peak a few years ago.

However, online traffic and interest have been picking up steam, which could lead to more room for the meme token to rise in the lead-up to the eventual decision on the Ethereum spot ETF.

Intriguing read: Shiba Inu Holders