In early August 2025, Shiba Inu (SHIB) faced severe market turbulence when a prominent whale deposited 40 billion SHIB onto Binance, liquidating nearly their entire position after months of dormancy. This transaction, identified by Arkham Intelligence, catalyzed a 16.4% price crash and exposed critical liquidity shortages across SHIB markets.
The whale exodus contradicts claims of imminent price rallies, instead highlighting shrinking large-scale transactions and diminishing institutional interest. SHIB's anonymous lead developer Shytoshi Kusama and core team maintained silence amid the sell-off, further eroding community confidence. Market analysts note the movement signals a broader shift from memecoins toward utility-based tokens, with retail investors proving unable to offset the liquidity vacuum left by exiting whales.
Historical data indicates no immediate recovery precedent following such whale withdrawals without substantive project updates. With trading volumes insufficient to restore stability and no significant developments from the SHIB ecosystem, the token faces sustained pressure. An Arkham Intelligence analyst emphasized: "This offloading represents a near-total position exit after prolonged inactivity", underscoring the gravity of the liquidity crisis.
