25 February, 2024

Shiba Inu Burns and Whale Activity Rise, But Price Remains Unignited

1 month ago

13 Jan, 2024

  • Shiba Inu’s burn rate skyrockets 400%, removing 18 million tokens from circulation.
  • Whales accumulate 2.39 trillion SHIB, hinting at long-term holding or bullish sentiment.
  • Price remains sluggish despite positive developments, lagging behind Bitcoin and Ethereum.

Shiba Inu (SHIB) bites at Dogecoin’s heels and has seen recent surges in whale activity and token burning, but its price remains sluggish. Shibburn, a Shiba Inu burn rate tracker, reported its token burn rate soaring over 400% on January 12 and the removal of a substantial 18 million SHIB tokens from the circulating supply.

The token’s fundamental metrics, as showcased by recent data from Shibburn, reveal a burn rate of -95.5% in the last 24 hours. The total burnt from the initial supply has reached a staggering 999,982,388,682,038, leaving a circulating supply of 8,222,782,394,807 SHIB.

This surge in the burn rate is attributed to three anonymous entities transferring a combined total of 16 million SHIB tokens to an irretrievable “dead wallet,” as reported by Shibburn data. This development follows the recent approval of exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC).

Adding to the bullish sentiment, several technical indicators on SHIB’s chart hint at a potential upward trend. TradingView data suggests the absence of major resistance levels beyond the psychological barrier at $0.000012. This lack of resistance could pave the way for a robust rally, especially considering the consistent higher lows SHIB has been printing since bouncing off the $0.000009 support level.

Additionally, LookOnChain, a blockchain analytics firm, revealed that over the past month, four large investors, commonly called “whales,” have collectively accumulated over 2.39 trillion SHIB tokens, valued at approximately $24.15 million. This influx of whales, moving significant amounts of SHIB from exchanges like Binance and Gate.io, suggests potential long-term holding plans or confidence in the token’s future.

Source: Twitter

As shown in the image above, Ethereum whales have shown a heightened interest in SHIB, with a significant transaction involving a crypto whale acquiring a staggering 136.86 billion SHIB tokens. The transaction, valued at approximately $1.38 million, saw funds being moved from the cryptocurrency exchange Binance to a private decentralized wallet.

This, coupled with data showcasing a 4.86% increase in SHIB’s value over the past month compared to more substantial gains in Bitcoin (9.78%) and Ethereum (16.09%), raises questions about the token’s market performance.

Despite these seemingly positive developments, SHIB’s price has not followed suit. The token currently sits at $0.0000101, down nearly 2% in the past 24 hours and trailing behind leading cryptocurrencies like Bitcoin and Ethereum in recent gains.