Data from the market intelligence platform IntoTheBlock shows that Shiba Inu whales have been offloading their holdings over the last 30 days. This development is likely due to several factors, including the meme coin’s unimpressive price action in recent times.

Shiba Inu Whales Reduce Their Holdings

Data from IntoTheBock shows that Shiba Inu whales have reduced their holdings over the last 30 days. Specifically, there has been a drop of over 6% in investors’ holdings between $100,000 and $1 million worth of SHIB. Additionally, there has been a drop of over 3% and 7% in the holdings of whales holding between $1 million and $10 million SHIB and $10 million Shiba Inu tokens, respectively.

This bearish sentiment among Shiba Inu whales looks to have heightened in the last seven days, as the large holders’ netflow has dropped by over 670%. A drop in this metric indicates that these investors are offloading their tokens rather than accumulating more. Meanwhile, it is also worth mentioning that large transactions have dropped by almost 5%

Shiba Inu’s unimpressive price action can be singled out as one of the reasons why these whales have been offloading their tokens. The second-largest meme coin is down by over 7% and 14% in the last seven and thirty days, respectively. While the meme coin’s downtrend can be attributed to Bitcoin’s decline, it is worth mentioning that Shiba Inu has sometimes failed to recover even when the flagship crypto recovered.

These whales are also believed to be cutting their losses, as Shiba Inu is still at risk of further declines. Data from IntoTheBlock shows that most of SHIB’s current holders bought the meme coin while it was above $0.00002, so it’s understandable that these investors look to apply risk management, seeing how far off the meme coin is from that price level.

SHIB’s Adoption Has Stagnated

Data from IntoTheBlock shows that Shiba Inu adoption has remained stagnant for a while now. This means that the meme coin is no longer witnessing an influx of new investors like it used to. That is undoubtedly worrisome, considering how this category of investors helps bring in new money and trigger price rallies.

Shiba Inu looks to be suffering the same fate as Dogecoin, which has seen its network activity remain flat for the last three months, with the number of new addresses also declining. A plausible explanation is that meme coin traders currently fancy the newer meme coins since they are more likely to give them more returns than Dogecoin or Shiba Inu.

As crypto analyst Altcoin Sherpa noted, major cap meme coins like Dogecoin and Shiba Inu will likely record only a few price gains in this bull run and are only suitable for whales who can invest a sizeable amount. This explains why 73% of Shiba Inu’s supply is currently concentrated in the hands of these whales.

At the time of writing, Shiba Inu is trading at around $0.00001412, up over 6% in the last 24 hours, according to data from CoinMarketCap.