- A significant number of SHIB tokens are burned as whales collect the token.
- The price remained relatively the same, while network growth decreased.
In recent months, many new memecoins have entered the market and have gained significant popularity. Despite new tokens capturing a large portion of the market share, Shiba Inu[SHIB] continued to see growth.
One of the reasons for this is said to be the Shiba Inu’s burning speed.
SHIB BURNS
The recent increase in Shiba Inu 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 increased by a whopping 3900% within a 24-hour period, with a significant contribution of 4.03 million tokens burned coming from a single wallet address.
This community effort, in addition to smaller burns from other members, has significantly reduced SHIB’s circulating supply.
Adding to the optimism, whales and major SHIB holders have been actively purchasing tokens.
Collectively, nine whale wallets invested a significant $35.2 million, acquiring a whopping 1.356 trillion SHIB tokens. This significant investment by Whales indicates their belief in SHIB’s potential for future growth.
The combination of reduced supply from burning and an increase in whale purchases has fueled hopes of a potential SHIB price rise among investors and traders.
Source:
How are things going with SHIB?
Price-wise, SHIB was trading at $0.0000253. In the past 24 hours, SHIB’s share price has fallen by 1.60%.
The price moved largely sideways despite the increasing accumulation of whales.
Over the past three months, SHIB price has shown multiple lower lows and lower highs indicating a bearish trend. SHIB’s recent sideways move did not hint at a possible turnaround in the future.
In terms of network growth, a decline was observed. This implied that new addresses lost interest in SHIB.
If this trend continues and new users are not attracted to SHIB, it could cause further problems for the SHIB token and result in a price drop.
Read Shiba Inu’s [SHIB] Price forecast 2024-25
The velocity around the SHIB token also dropped significantly. A decreasing rate indicated that the frequency of token trading has also dropped significantly in recent days.
Source: Santiment