Shiba Inu’s Dominance Drops To 3-Month Low: Analysis

Shiba Inu’s dominance dropped to a 3-month low while its dominance was among the 1000 biggest ETH wallets previously so let’s read more today in our latest altcoin news.

Shiba Inu was one of the most dominant assets among the whale addresses with the dominance reaching 12% at the point that SHIB reached its recent ATH. Following the correction on the market, the short-term traders started selling out their assets to avoid losses. The next wave of buying power appeared during the recent recovery of the token and starting by the end of December, the asset’s price faced a 25% increase in less than a week but for investors, it retraced by 15%.

The main reason for the drop in dominance is the distribution of funds on the market with most of the investors moving their funds to smaller altcoins and stablecoins to preserve them while the correction is ongoing on the market. According to the tracker’s data, the majority of the funds remain in the other tokens categories with 10% of the whales’ capital. The only token behind SHIB is the FTX token with $1.5 billion of the funds sitting in the exchanges’ utility token. The two categories right after Shiba and FTX are the USDT and USDC tokens with a capitalization of $1.6 billion. SHIB is showing a small price action after the 12% correction and the price changed by 2% on the day.

As recently reported, The Dogecoin rival wants to give its users more control over crypto projects which is why SHIB launched Beta DAO version to give them more authority to decide on crypto projects and pairs on the platform. The Dogecoin rival will release Doggy Day in a “stage-by-stage” metric and the first phase called “DAO 1” will be implemented in the next few days.

The DAO 1 phase will mostly focus on providing immediate power to the community and decide which crypto projects and pairs on the ShibaSwap WOOF pools will be and how the BONE rewards will be distributed amongst them. The DAO will use BONE for voting rights which is the new staking contract and can lock BONE for a longer period of time before the voting even begins. Once the first phase is complete, thanks to the community feedback, Shiba Inu will release a new version dubbed DAO 2 to allow the community to make generic proposals for considerations or review by the “Multisig-Team and Breeds.