Key Insights
- Shiba Inu’s burn rate skyrocketed by 1,500% over the last 24 hours, with 44 million tokens destroyed.
- Dormant whales are withdrawing their SHIB from exchanges this year.
- All of these developments, along with SHIB lead developer Shytoshi Kusama’s TREAT announcement should increase SHIB’s price and stability.
Shiba Inu, the second largest memecoin in the crypto market, has been making great moves lately. One of these was a massive surge in its burn rate.
This development has reignited optimism among investors and traders, around likely SHIB price action.
Here’s a deeper look at the key factors driving this excitement.
Over 33 Million Tokens Destroyed in a Day
This week on 3 December, the Shiba Inu community witnessed an extraordinary 1500% spike in the token’s burn rate.
According to data from Shibburn, over 33 million SHIB were removed from circulation in a just day.
This burn mechanism permanently destroys tokens, removing them from circulation and boosting the token’s value.
The official ShibBurn resource highlights that around 44.03 million tokens were burned in the last week.
On an annual basis, ShibBurn shows that the number of tokens destroyed last year increased tenfold with around 44.62 billion burned across 143 transactions.
Interestingly, December alone saw 2.67 billion burned tokens. These consistent burns position SHIB as one of the memecoin market’s most promising players.
Dormant Whale Activity Spells Bullish Action
According to LookOnChain in a recent tweet, a dormant SHIB whale recently withdrew 220 billion tokens from Binance on 1 January.
This move shows that the whale in question was going for a long-term holding strategy, rather than selling their SHIB for short-term gains.
The Shiba Inu market could likely become more stable in the future, since large-scale withdrawals like these are usually a sign of increased investor trust.
Price Movement To The Upside
These factors have had a modest impact on SHIB price, which currently sits at around $0.00002328, as of writing. This price impact stands at a 2% price increase over the last 24 hours before writing, and 4.6% over the last week.
The memecoin’s trading volume has also surged by 22% to $510 million, according to CoinMarketCap.
Despite these price increases, SHIB is still down by around 23% on the monthly chart. This decline was mostly due to the broader market downturn late last year.
The Broader Market’s Signs of Recovery
As of 3 January, the global crypto market has been up by 0.38% over the last 24 hours to $3.42 trillion.
Out of this recovery, the memecoin market has emerged as a standout performer with a 10% surge in the last three days and a total market cap of $103.5 billion.
This broader market recovery and SHIB’s resurgence shows that more growth could be incoming through the next few months.
Shiba Inu Ecosystem Developments
The SHIB ecosystem is evolving beyond the increase in burn rate.
According to the community’s lead developer, Shytoshi Kusama, the TREAT token is on its way to launch, and is expected to further support the ecosystem. TREAT will complement ongoing developments like SHIB burns and community-driven initiatives as SHIB blasts its way towards the $0.001 mark.
Overall, Shiba Inu’s remarkable burn rate surge and ecosystem announcements have been one of the sources of speculation on SHIB’s price. Going forward, SHIB is well-positioned to capitalize on these trends.
Its ability to hit the coveted $0.001 milestone remains to be seen. However, its growing market activity suggests a bright future for the token.