- A significant amount of SHIB tokens get burned as whales accumulate the token.
- Price remained relatively the same while network growth declined.
Over the past few months, many new memecoins have entered the fold and have gained significant traction in terms of popularity. Despite new tokens gaining a large chunk of the market share, Shiba Inu[SHIB] continued to see growth.
One of the reasons for the same would be Shiba Inu’s burn rate.
SHIB BURNS
The recent surge in Shiba Inu’s burn rate has caused a stir in the cryptocurrency community. This burning process removes SHIB tokens from circulation, potentially leading to a decrease in overall supply.
Notably, the burn rate rose by a staggering 3900% within a 24-hour period, with a significant contribution of 4.03 million burned tokens coming from a single wallet address.
This community effort, alongside smaller burns from other members, has significantly reduced the circulating supply of SHIB.
Further fueling the optimism, whales and major SHIB holders, have been actively buying tokens.
Collectively, nine whale wallets invested a substantial $35.2 million, acquiring a massive 1.356 trillion SHIB tokens. This significant investment by whales indicates their belief in SHIB’s potential for future growth.
The combination of a reduced supply through burning and increased whale buying has ignited hope for a potential SHIB price rally among investors and traders.
Source: X
How is SHIB doing?
In terms of price, SHIB was trading at $0.0000253. Over the last 24 hours, the price of SHIB had declined by 1.60%.
The price moved sideways for the most part despite growing whale accumulation.
Over the past three months, the SHIB price has shown multiple lower lows and lower highs indicative of a bearish trend. SHIB’s recent sideways movement did not allude to a possible reversal in the future.
In terms of network growth, there was a decline observed. This implied that new addresses were losing interest in SHIB.
If this trend continues and new users fail to be attracted to SHIB, it could further cause problems for the SHIB token and result in a decline in price.
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
The velocity around the SHIB token also fell significantly. A declining velocity indicated that the frequency of tokens being traded has also fallen materially over the last few days.
Source: Santiment