Crypto whale transaction tracker Whale Alerts recently revealed an interesting on-chain transaction involving popular meme coins Shiba Inu and Dogecoin alongside the well-known crypto exchange Robinhood.
This transaction, which took place within the past 24 hours, involved the movement of 800 million DOGE and 2.7 trillion SHIB tokens, respectively, from the exchange into unknown wallets. As expected, the huge nature of these transfers has piqued interest, prompting further analysis of on-chain data to ascertain the motive behind them.
Analyzing The Transactions
Analyzing the DOGE transaction first, the notable transactions involved the transfer of 800 million DOGE tokens from Robinhood into an unknown wallet “DEgDVF.” This transfer was executed in two separate transactions, each comprising 400 million DOGE tokens.
At the time of these transactions, each transfer was valued at approximately $50.27 million, making the total value of the transferred DOGE tokens roughly $100.54 million. At the time of writing, address “DEgDVF” holds 31 billion DOGE tokens worth $4.17 billion, making it one of the largest DOGE holders.
— Whale Alert (@whale_alert) July 19, 2024
Turning attention to the SHIB transaction shows the 2.7 trillion SHIB tokens were sent into address “0x40B3.” At the time of transfer, these tokens were worth $48.3 million. Address “0x40B3” is also one of the largest SHIB holders and currently possesses 36.6 trillion SHIB tokens with a market value of $654 million.
— Whale Alert (@whale_alert) July 19, 2024
Whale transactions and their effects on other traders cannot be overstated. Such huge holdings belonging to one entity would make the individual one of the most influential meme coin holders. A decision to sell a major part of the holdings would have profound effects on the price of DOGE, SHIB, and other memecoins.
Given the substantial holdings of both addresses “DEgDVF” and “0x40B3,” it is safe to assume that both unknown addresses could as well belong to Robinhood itself. The transfer could just be a strategic movement into cold storage by the crypto exchange.
Regardless of the exact identity of the wallet, the movement of such large quantities of DOGE and SHIB tokens has implications for the market. The market is slowly moving into another bullish state, and the substantial reduction in the supply of these tokens on the Robinhood exchange contributes to a decrease in selling pressure.
At the time of writing, Dogecoin (DOGE) was trading at $0.1313, reflecting an increase of 3.5% over the past 24 hours. Shiba Inu (SHIB), on the other hand, is trading at $0.00001791, showing a more modest rise of 0.5% within the same 24-hour period. In other news, on-chain data shows that DOGE whales have been quietly buying up millions of Dogecoins.
Featured image from TheStreet, chart from TradingView