Santiment Warning: Investing in These Altcoins May Be Dangerous!

While it is noted that the dominance of whales has significantly increased in some altcoins with large market capitalizations, investors have been warned to be cautious while holding these altcoins.

Crypto analysis firm Santiment shared striking data regarding the supply ratios controlled by whales in the altcoin market. According to the shared information, the popular meme coin Shiba Inu (SHIB) stands out as the asset with the highest whale concentration. A full 62% of SHIB's total supply is controlled by just the top 10 wallets. This ratio indicates how vulnerable the asset is to sudden price drops and market manipulation.

According to the shared data, assets considered relatively safer in terms of whale concentration include USD Coin (USDC) and Chainlink (LINK). Only 27% of USDC's supply is held by the top 10 whales, while 32% of Chainlink's supply is under the control of whales. These ratios suggest that these assets may be less affected by sudden selling moves from whales.

Shiba Inu investors are at risk

The analysis shared by Santiment is particularly alarming for Shiba Inu investors. Due to the high supply control by whales, small investors remain vulnerable to unexpected price movements. Experts emphasize the importance of being especially cautious when investing in assets with high whale control like SHIB.

According to Santiment, it is crucial for investors to continuously monitor the supply ratios held by whales for effective risk management. Sudden sell-offs or large-scale wallet movements can lead to significant losses, especially for small investors. Santiment's latest report also indicates that investors need to take these risks into account when making decisions.