For the first time in nearly two years, Shiba Inu (SHIB) has seen a decline in its holder count, signaling a potential shift in market sentiment. The long-standing accumulation trend that helped support SHIB’s rise appears to be cooling, with on-chain data showing a retreat among smaller and short-term investors.
Retail Investors Pull Back
According to analytics platform Santiment, the number of wallets holding modest SHIB balances—less than 1 billion tokens—has fallen to its lowest level in almost two years. This suggests that many small investors are cashing out, possibly due to profit-taking or fading enthusiasm.
Short-term traders, particularly those who joined the market within the past 30 days, are also exiting at a noticeable pace. Their numbers have sharply declined over the last month, indicating reduced confidence from retail participants who once fueled SHIB’s hype-driven rallies.
The selling pressure isn’t limited to newcomers. On-chain metrics, including “Age Consumed,” show that long-term holders are moving their assets too. This movement may reflect capitulation from investors who have held SHIB through previous cycles or a strategic reallocation to other opportunities.
Such shifts among both short- and long-term holders highlight a broader trend of waning conviction within the SHIB community.
Whale Activity Hits a Low
Adding to the bearish outlook, large-holder activity—often used as a gauge for institutional or high-net-worth participation—has plunged dramatically. Reports show that whale inflows have dropped by roughly 92% in recent weeks. This steep decline suggests that major players are either quietly reducing exposure or avoiding new positions altogether.
With both retail and whale participation shrinking, SHIB’s liquidity and price stability could face mounting pressure.
A drop in holder count after consistent growth raises concerns about weakening demand. Retail investors have historically been a major force behind memecoin rallies, and their pullback could leave SHIB more vulnerable to extended price softness.
Still, some loyal long-term holders remain committed to the project, providing a potential base for recovery. If broader crypto market conditions improve, renewed accumulation could reignite momentum.
For now, though, SHIB must navigate a period of uncertainty marked by declining confidence across multiple investor segments.
