Shiba Inu Sees 74% On-Chain Activity Crash — What's Going On?

Shiba Inu Sees Significant Drop in Large Transaction Volume

On-chain data from IntoTheBlock reveals a 74% decline in Shiba Inu's large transaction volume over the past five days. The volume dropped from 5.76 trillion SHIB on May 20 to just 1.47 trillion SHIB on May 25. Large transactions typically reflect activity from whales or major holders, signaling either accumulation or distribution.

Possible Reasons Behind the Decline

The exact cause of this drop remains uncertain, but several theories have emerged. Whales may be stepping back to await clearer market signals before re-entering. This doesn't necessarily indicate bearish sentiment—it could suggest a period of quiet accumulation or a pause following recent price movements. SHIB has been consolidating between $0.00001388 and $0.00001670 after peaking at $0.00001764 on May 12.

Shiba Inu Remains Broadly Consolidated

SHIB continues to trade within a defined range, hovering between its 50-day ($0.0000135) and 200-day ($0.0000181) moving averages. At press time, the token was up 1.2% in 24 hours to $0.0000144, mirroring broader market trends. The daily RSI has stabilized near the 50 midpoint, suggesting potential consolidation or range-bound trading in the near term.

Long-Term SHIB Holders Remain Committed

Despite market fluctuations, long-term SHIB investors show no signs of exiting. On-chain analytics indicate approximately 1.13 million addresses—classified as "hodlers"—have held their positions for over a year. This demonstrates remarkable resilience in a market often driven by short-term speculation.

IntoTheBlock data further confirms this trend, with 78% of SHIB holders maintaining their positions for more than 12 months—a strong vote of confidence in the dog-themed cryptocurrency.