Crypto whale transaction tracker Whale Alerts recently revealed an interesting on-chain transaction involving popular meme coins Shiba Inu And Dogecoin next to the well-known crypto exchange Robinhood.
This transaction, which took place over the past 24 hours, involved the movement of 800 million DOGE and 2.7 trillion SHIB tokens from the exchange to unknown wallets, respectively. As expected, the sheer size of these transfers has attracted interest, prompting further analysis of on-chain data to determine the motive behind it.
Analyzing the transactions
If we first analyze the DOGE transaction, we can see that the notable transactions include the transfer of 800 million DOGE tokens from Robinhood to an unknown wallet “DEgDVF”. This transfer was done in two separate transactions, each consisting of 400 million DOGE tokens.
At the time of these transactions, each transfer was valued at approximately $50.27 million, bringing the total value of DOGE tokens transferred to approximately $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.
🚨 🚨 🚨 400,000,000 #DOGE (USD 50,338,797) transferred from #Robin Hood to unknown wallethttps://t.co/Lg71fA5yYl
— Whale Alert (@whale_alert) July 19, 2024
If we look at the SHIB transaction, we can see that the 2.7 trillion SHIB tokens were sent to 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 holds 36.6 trillion SHIB tokens with a market cap of $654 million.
🚨 🚨 2,700,000,000,000 #SHIB (48,343,500 USD) transferred from #Robin Hood to unknown wallethttps://t.co/6aMEc1Vr3E
— Whale Alert (@whale_alert) July 19, 2024
Whale transactions and their effects on other traders cannot be stressed enough. Such massive holdings belonging to one entity would make the individual one of the most influential memecoin holders. A decision to sell a large portion of the holdings would have a profound effect on the price of DOGE, SHIB, and other memecoins.
Considering the substantial holdings of both addresses “DEgDVF” and “0x40B3,” it’s safe to assume that both of the unknown addresses could easily belong to Robinhood itself. The transfer could simply be a strategic move into cold storage by the crypto exchange.
Regardless of the exact identity of the wallet, the movement of such large amounts of DOGE and SHIB tokens has implications for the market. The market moves slowly in another bullish stateand the significant reduction in the supply of these tokens on the Robinhood exchange contributes to a reduction in selling pressure.
At the time of writing, Dogecoin (DOGE) is trading at $0.1313, reflecting a 3.5% increase over the past 24 hours. Shiba Inu (SHIB), on the other hand, is trading at $0.00001791, marking a more modest 0.5% increase over the same 24-hour period. In other news, on-chain data shows that DOGE whales buy quietly millions of Dogecoins.
Main image from TheStreet, chart from TradingView