- The Shiba Inu burn rate has significantly benefited from the heightened whale activity and the increased adoption of Shibarium-based DeFi protocols.
- Shiba Inu price has gradually been turning to a rising trend characterized by higher highs and higher lows on the weekly time frame, thus indicating more buying pressure.
Shiba Inu (SHIB), the second largest meme coin by market capitalization with more than 1.37 million on-chain holders, has grown to a mature ecosystem through the Shibarium layer two scaling solution. As of this report, a dozen decentralized financial (DeFi) platforms – led by Marswap, ChewySwap, DogSwap, and PunkSwap, among others – had locked about $792k on the Shibarium network.
The importance of the Shibarium network cannot be underrated amid heightened competition in the meme coin industry.
In the past year alone, several meme coins have emerged from different blockchains including BONK from Solana, Memecoin (MEME) on Ethereum, and Coq Inu (COQ) from Avalanche network among many others. In addition, other competitive meme coins like Dogecoin (DOGE) that is backed by Elon Musk.
Closer Look at Shiba Inu Burn Rate and Whale Activity
The Shiba Inu network has recorded heightened whale activity in the recent past, thus indicating a growing demand from institutional investors and retail traders. Moreover, Shiba Inu has a ready liquidity of more than $7 million through Uniswap alone, which is locked through smart contracts.
According to on-chain data, a whale trader moved about 4.2 trillion SHIB tokens worth approximately $37 million for a fee of around $3 on the Ethereum network in the past 24 hours. Notably, similar transactions have been recorded on the Shiba Inu network in the recent past, thus triggering a heightened SHIB burn rate.
🚨 🚨 4,276,568,835,013 #SHIB (37,950,271 USD) transferred from unknown wallet to unknown wallethttps://t.co/Bw1yGOBvGw
— Whale Alert (@whale_alert) January 22, 2024
According to data provided by the Shibburn website, the rate at which Shiba Inu tokens are being sent to the dead wallet experienced an uptick of more than 400 percent in the past 24 hours with more than 140 million SHIB obliterated from existence.
As a result, the total amount of SHIB tokens completely removed from circulation amounts to about 410.7 trillion, which represents around 41 percent of the total circulating supply. Worth noting that the Shiba Inu network has enjoyed tremendous support from the Ethereum community including co-founder Vitalik Buterin who sent the majority of the 41 percent to the null addresses.
SHIB Market Outlook and Price Action
As with the rest of the crypto market, Shiba Inu’s price has dropped in tandem with Bitcoin amid heightened selling pressure. Furthermore, the approval of 11 spot Bitcoin ETFs in the United States has become a sell-the-news event that could easily see another 10-20 percent drop in the total market capitalization.
The Shibarmy has significantly grown over the past year, especially following the successful launch of the Shibarium layer two scaling solution. Consequently, the overall SHIB liquidity has significantly improved, especially with the meme coin available for trading on different DeFi protocols and centralized exchanges. Meanwhile, Shiba Inu’s price has dropped more than 6 percent in the past 24 hours leading to Tuesday to trade at .
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