A significant event in the crypto market recently unfolded as more than 4 trillion Shiba Inu tokens were transferred from Bitvavo, one of the major crypto exchanges in the Netherlands. This massive transfer, equivalent to approximately $33.9 million in fiat currency, triggered widespread speculation about the potential impact on Shiba Inu’s price movement.
The transfer was first detected by Whale Alert, a prominent data tracker, which observed the withdrawal of 4,464,530,677,374 SHIB from Bitvavo to an undisclosed wallet. However, further investigation revealed that the receiving wallet also belonged to Bitvavo, indicating that this was an internal transfer within the crypto trading platform.
This substantial transfer followed a series of similar transactions from Bitvavo over the past month. In a previous instance, 4.62 trillion SHIB tokens, valued at over $35.7 million, were transferred. Although initially masked as moving to an unknown wallet, blockchain analysis unveiled that it was linked to a newly created address associated with Bitvavo.
Despite the uncertainty surrounding Bitvavo’s involvement in these transactions, insights from Arkham Intelligence revealed that Bitvavo’s confirmed wallets held a relatively small reserve of 250 million Shiba Inu tokens, worth approximately $1.93 million.
Shiba Inu Price Rally Might be Derailed?
In terms of Shiba Inu’s price movement, the cryptocurrency experienced a notable surge in the last week of October 2023, with a gain of over 15% within the past 10 days of the month. On-chain metrics provided by Santiment indicated that long-term holders of SHIB had recently started booking profits, as evidenced by the increase in Shiba Inu Age Consumption to 437 trillion on November 2.
Shiba Inu Age Consumption is a crucial on-chain indicator that measures changes in the trading activity of long-term holders. It calculates the age consumed by multiplying the recently traded tokens by the number of days since they were last moved. The significant rise in Age Consumed observed on October 2 indicated that many long-term SHIB holders had begun selling their holdings.
This trend, coupled with the growing exchange reserves, poses a potential risk to the ongoing Shiba Inu price rally. If long-term holders continue to intensify their selling activities, it could have a significant impact on the cryptocurrency’s price trajectory. Investors and market participants closely monitor these developments to gauge the future direction of Shiba Inu’s value in the market.