Shiba Inu Faces 5% Price Drop After Voyager’s Coinbase Transfer

Bankrupt crypto lender Voyager Digital has moved almost $6 million in Ethereum and Shiba Inu tokens to Coinbase. The asset movement has led to SHIB’s price dropping by around 5% in the last 24 hours.

The firm holds over a trillion Shiba Inu tokens, raising concerns about the impacts of dumping the token on exchanges.

Voyager Transferring Different Assets to Exchanges

Over the past few days, the Arkham Intelligence dashboard shows that Voyager made several transactions involving digital assets like Ethereum, Shiba Inu, and USDC to Coinbase deposit addresses. The most recent transactions involved the transfer of 1,500 ETH and 250 billion SHIB tokens to Coinbase.

Market observers have suggested that the transactions indicated that the bankrupt firm was consolidating assets into its main address. Indicating that it might sell off these cryptocurrencies further.

This move followed the expiry of its 30 days windows, allowing users to withdraw a portion of their assets before the firm liquidates the rest. BeInCrypto reported that the lender’s users withdrew over $250 million from the platform in July.

Voyager Holds $90M Worth of Crypto

With the expiration of the withdrawal window, Voyager is set for the next stage, which would see it liquidate its remaining assets for stablecoins. However, there are concerns that this liquidation could create selling pressure, especially for cryptocurrencies like Shiba Inu and ETH.

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According to the Arkham Intelligence dashboard, the bankrupt lender holds cryptocurrencies worth $93.7 million. A breakdown of the assets showed it currently holds 1.046 trillion SHIB tokens valued at over $11 million. The firm also holds over 5k ETH, worth over $10 million. Other crypto holdings of the company include its native VGX token, Bitcoin, and Shiba Inu

Is SHIB Price Rally Ending?

Meanwhile, Voyager’s SHIB transfer has ended the meme coin weekend rally. Over the past week, Shiba Inu had outperformed the broader crypto market, increasing its price by more than 20%. However, the asset’s value dropped 5% during the last 24 hours, according to BeInCrypto data.

The digital asset is expecting the launch of its Shibarium layer-2 network, whose testnet has enjoyed massive adoption and usage from the community.

Its developers have also teased a number of new partnerships designed to provide more utility for the token.