Shiba Inu’s recent price drop is being fueled by a surge in whale activity, raising concerns about the cryptocurrency’s stability and investor confidence. Key data highlights this trend: major holders have significantly reduced their holdings, leading to a decline in SHIB token volume. These large-scale exits are attributed to realized losses, with investors losing approximately $1.04 million. The market turmoil is further evidenced by a declining burn rate and 33% year-to-date decrease in Layer-2 value. This sell-off poses challenges for the broader meme coin sector as whale dumps can trigger downward trends and erode investor confidence. The impact of this behavior goes beyond Shiba Inu, potentially impacting other assets like BONE and exacerbating market volatility on platforms like Shibarium.