Over 60% of SHIB's current supply is held by whales.
In a recent analysis conducted by IntoTheBlock, it has been revealed that a significant portion of memecoin holders find themselves in a position of unrealized losses. Among these, Shiba Inu investors appear to be the most severely affected, with a mere 11% of them currently enjoying profits from their investments.
Interestingly, despite various developments and advancements in the Shiba Inu ecosystem, the price of this asset has taken a downturn, mirroring the broader trends observed in the cryptocurrency market as a whole.
Illustrated in a revealing infographic by the blockchain intelligence entity, it becomes evident that the majority of holders across various memecoins, including Dogecoin, Pepe, Leash, Dogelon Mars, Shiba Inu, and Floki, are currently underwater, meaning their investments are valued less than their initial capital.
Dogecoin investors seem to be relatively more fortunate at the moment, with 42% of them reporting profits. In contrast, those holding Floki are at the lower end of the spectrum, with just 10% seeing positive returns on their investments.
The individuals who put their trust in Shiba Inu, often touted as a rival to Dogecoin, have been hit hard by the recent market decline, with a staggering 89% of them facing paper losses.
The decline in SHIB's price can be attributed to several factors, one of which is the launch of Shibarium, a layer-2 scaling solution developed for Shiba Inu, which went live towards the end of August. The primary objective of Shibarium is to enhance transaction speed, reduce transaction costs, and position Shiba Inu more competitively among its memecoin counterparts. It's worth noting that the number of wallets on Shibarium has recently surpassed the one million mark, indicating a growing interest in the network.
In addition to analyzing the profitability of memecoin holders, IntoTheBlock delved into the distribution of these tokens among large investors, often referred to as "whales." The analysis revealed that a substantial 75% of the Dogelon Mars supply is concentrated among these large investors. Shiba Inu follows closely behind with whale ownership accounting for 63% of its total supply.