Why SHIB could be skating on thin ice as Voyager reopens withdrawals

• Large amounts of withdrawals take place as Voyager activates them on its network.
• After BTC, ETH, and USDC, SHIB becomes the largest cryptocurrency on the protocol.

Voyager, a centralized exchange that failed due to the collapse of Luna and Terra left many of its depositors and users stranded. However, on 23 June, Voyager reopened withdrawals of various cryptocurrencies on its platform.

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On a voyage here…

According to data provided by Dune Analytics, over $229 million has already been transferred out from the platform. At press time, Voyager’s tagged wallets still held a substantial amount of $196 million.

These wallets contained holdings that included 74 million BTC, $52 million worth of ETH, $32 million in USDC, $15 million of $SHIB, and 7 million of VGX.

Since @investvoyager re-opened withdrawals on 23 Jun, over $229M has been transferred out from the platform

Voyager still has $196M in its tagged wallets. Some notable holdings include:

– 74M $BTC
– $52M $ETH
– $32M $USDC
– $15M $SHIB
– $7M $VGX pic.twitter.com/kUlxrQjmiL

— Tom Wan (@tomwanhh) July 9, 2023

The access gained by Voyager addresses could have varied impacts on various cryptocurrencies. Users may be more keen on HODLing blue chip coins such as ETH and BTC as sentiment and prices of both these coins have been on the rise over the last few months.

Source: Dune Analytics

However, one may also need to consider the possibility that memecoins like SHIB may not face a smiliar intact. Memecoins are known for their highly volatile behavior and predicting the future of their price may be difficult. Users who have just gained access to their holdings may want to avoid risky holdings such as SHIB and may try to sell and invest their holdings elsewhere.

Other popular memecoins such as PEPE that took the crypto market by storm could also look appealing to these holders who may want to diversify their memecoin portfolio.

Word on the street

At press time,  it was observed that SHIB’s social mentions and engagements had declined significantly over the past week. According to LunarCrush’s data, the number of social mentions and engagements for SHIBA fell by 78% and 49% respectively.

Realistic or not, here’s SHIBA market cap in BTC’s terms

Additionally, the sentiment around SHIB over the last three months had also turned significantly negative. In tandem with its falling sentiment, SHIBA’s price also dropped and traded at a press time price of $0.0000075.

Source: Santiment