Shiba

Uniswap

Bitcoin

Polygon

Shiba Inu

The crypto market has showcased a sideways trend for the past few months following the consolidation trend in Bitcoin price. As a prolonged correction looms, altcoins like MATIC, SHIB, and UNI are at risk for significant downfall as a small number of entities hold the majority of supply.&nbsp; 
<h2 id="span-style-font-weight-400-centralization-risks-loom-over-matic-shib-uni-span">Centralization Risks Loom Over MATIC, SHIB, UNI</h2> 
Centralization is a key issue in the cryptocurrency market that continues to stir debate. Centralization in this context refers to the concentration of a cryptocurrency’s total supply in the hands of a few wallets. If a small group holds the major portion of a particular asset, it could lead to market manipulation and other malpractice that could sabotage retail investors. MATIC, SHIB, and UNI currently show such a high degree of centralization as significant portions of their supply are held by the top 10 wallets 
<h2 id="span-style-font-weight-400-polygon-matic-span">Polygon (MATIC)</h2> 
Polygon (MATIC) tops the list with 69.4% of its total supply held by the top 10 wallets. This heavy level of centralization suggests that only a few key players control a major portion of the supply; therefore, their movement could have a major impact on <a href="https://coingape.com/price/polygon/">MATIC price</a>. 
The polygon coin currently trades at $0.4, boosting a market cap of $4 Billion. The MATIC coin is 86.2% down from the all-time-high (ATH) of $2.9 and has shown a sideways trend since May 2022. 
<figure id="attachment_214796" aria-describedby="caption-attachment-214796" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="wp-image-214796 size-full" src="https://coingape.com/wp-content/uploads/2024/08/Polygon-on-Ethereum-MATIC-23.48.53-30-Aug-2024-1.png" alt="Polygon (MATIC)" width="3840" height="1300" srcset="https://coingape.com/wp-content/uploads/2024/08/Polygon-on-Ethereum-MATIC-23.48.53-30-Aug-2024-1.png 3840w, https://coingape.com/wp-content/uploads/2024/08/Polygon-on-Ethereum-MATIC-23.48.53-30-Aug-2024-1-300x102.png 300w, https://coingape.com/wp-content/uploads/2024/08/Polygon-on-Ethereum-MATIC-23.48.53-30-Aug-2024-1-1224x414.png 1224w, https://coingape.com/wp-content/uploads/2024/08/Polygon-on-Ethereum-MATIC-23.48.53-30-Aug-2024-1-768x260.png 768w, https://coingape.com/wp-content/uploads/2024/08/Polygon-on-Ethereum-MATIC-23.48.53-30-Aug-2024-1-1536x520.png 1536w, https://coingape.com/wp-content/uploads/2024/08/Polygon-on-Ethereum-MATIC-23.48.53-30-Aug-2024-1-2048x693.png 2048w, https://coingape.com/wp-content/uploads/2024/08/Polygon-on-Ethereum-MATIC-23.48.53-30-Aug-2024-1-150x51.png 150w" sizes="(max-width: 3840px) 100vw, 3840px">
 <figcaption id="caption-attachment-214796" class="wp-caption-text">
 total supply held by the top 10 wallets | Santiment
 </figcaption>
</figure> 
While the network is preparing to implement the migration from <a href="https://coingape.com/just-in-matic-to-pol-token-migration-set-for-september-by-polygon/">MATIC token to POL</a>, the buyers could attempt to defend $0.33 support. A further breakdown could push the asset to $0.26, followed by $0.18. 
<h2 id="span-style-font-weight-400-shiba-inu-shib-span">Shiba Inu (SHIB)</h2> 
According to <a rel="nofollow" href="https://santiment.net/">Santiment</a> data, the Shiba Inu (SHIB) 61.2% of its supply is concentrated in the top 10 wallets. While this dog-themed meme coin takes pride in its large community and massive fanbase, this centralization hints that the actions of a few could significantly impact the SHIB price. 
The <a href="https://coingape.com/price-predictions/shiba-inu-shib-price-prediction/">Shiba Inu price prediction</a> suggests that the asset’s value, currently at $0.00001378, has returned to the same level it has fluctuated around since May 2022, following a six-month correction. 
<img decoding="async" class="aligncenter size-full wp-image-214776" src="https://coingape.com/wp-content/uploads/2024/08/SHIBA-INU-SHIB-22.16.17-30-Aug-2024.png" alt="Shiba Inu (SHIB)" width="3840" height="1300" srcset="https://coingape.com/wp-content/uploads/2024/08/SHIBA-INU-SHIB-22.16.17-30-Aug-2024.png 3840w, https://coingape.com/wp-content/uploads/2024/08/SHIBA-INU-SHIB-22.16.17-30-Aug-2024-300x102.png 300w, https://coingape.com/wp-content/uploads/2024/08/SHIBA-INU-SHIB-22.16.17-30-Aug-2024-1224x414.png 1224w, https://coingape.com/wp-content/uploads/2024/08/SHIBA-INU-SHIB-22.16.17-30-Aug-2024-768x260.png 768w, https://coingape.com/wp-content/uploads/2024/08/SHIBA-INU-SHIB-22.16.17-30-Aug-2024-1536x520.png 1536w, https://coingape.com/wp-content/uploads/2024/08/SHIBA-INU-SHIB-22.16.17-30-Aug-2024-2048x693.png 2048w, https://coingape.com/wp-content/uploads/2024/08/SHIBA-INU-SHIB-22.16.17-30-Aug-2024-150x51.png 150w" sizes="(max-width: 3840px) 100vw, 3840px"> 
The <a href="https://coingape.com/price-predictions/shiba-inu-shib-price-prediction/">SHIB price</a> is 84.5%, down from $0.00008845 ATH, steadily heading to the next support of $0.000012. A potential breakdown from this support could plunge the asset back to $0.00001. 
<h2 id="span-style-font-weight-400-uniswap-uni-span">Uniswap (UNI)</h2> 
Uniswap (UNI), a leading decentralized exchange (DEX) token, has 50.8% of its total supply held by the top 10 wallets. While Uniswap boosts itself on decentralization, especially in its governance, the concentration of tokens among large holders could significantly influence the decision-making process. 
By press time, the <a href="https://coingape.com/price/uniswap/">UNI price</a> trades at $5.6 and holds a market cap of $3.38 Billion. The major trend in Uniswap coin is sideways and is down 87.4% from ATH of $44.97. With sustained selling, the coin price could retest the $4.6 support, followed by $3.8. 
<img decoding="async" class="aligncenter size-full wp-image-214777" src="https://coingape.com/wp-content/uploads/2024/08/Uniswap-on-Ethereum-UNI-22.17.10-30-Aug-2024.png" alt="Uniswap (UNI)" width="3840" height="1300" srcset="https://coingape.com/wp-content/uploads/2024/08/Uniswap-on-Ethereum-UNI-22.17.10-30-Aug-2024.png 3840w, https://coingape.com/wp-content/uploads/2024/08/Uniswap-on-Ethereum-UNI-22.17.10-30-Aug-2024-300x102.png 300w, https://coingape.com/wp-content/uploads/2024/08/Uniswap-on-Ethereum-UNI-22.17.10-30-Aug-2024-1224x414.png 1224w, https://coingape.com/wp-content/uploads/2024/08/Uniswap-on-Ethereum-UNI-22.17.10-30-Aug-2024-768x260.png 768w, https://coingape.com/wp-content/uploads/2024/08/Uniswap-on-Ethereum-UNI-22.17.10-30-Aug-2024-1536x520.png 1536w, https://coingape.com/wp-content/uploads/2024/08/Uniswap-on-Ethereum-UNI-22.17.10-30-Aug-2024-2048x693.png 2048w, https://coingape.com/wp-content/uploads/2024/08/Uniswap-on-Ethereum-UNI-22.17.10-30-Aug-2024-150x51.png 150w" sizes="(max-width: 3840px) 100vw, 3840px"> 
However, the immediate resistances are at $6.6 and $8.6. 
Conclusion 
An asset with most of its supply controlled by a small group should be approached cautiously, as it may be prone to instability. However, it could be a positive indicator if the holders refrain from selling, as it may also reflect their confidence in the asset’s long-term potential. 
The post <a href="https://coingape.com/markets/key-reason-why-investors-must-avoid-matic-shib-uni/">Key Reason Why Investors Must Avoid MATIC, SHIB, UNI</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Key Reason Why Investors Must Avoid MATIC, SHIB, UNI

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