SHIB token burn rates are seemingly rising on the Shiba Inu network. The current number of Shiba Inu burn trackers is quite surprising. However, data shows it is due to the degenerative performance of the SHIB burning machine.
On-chain data shows that the SHIB burn rate observed a massive 1682.07% increase over the past 24 hours. That is the highest percentage rise in the burn rate on the SHIB network in the past few months.
Why Is SHIB Burn Rate Increasing?
In detail, the number of burnt tokens on the Shiba Inu network did not exceed 1 million SHIB on January 26. Yesterday’s amount was one of the lowest numbers of assets developers has burned on the network. So, the seeming spike in burn rate could be due to a default in the SHIB burning machine yesterday.
According to analysts, this percentage spike wasn’t triggered by increased network activity. Also, it didn’t represent a large number of actually burnt tokens.
Token burns help to reduce the number of coins in circulation. It helps increase an asset’s scarcity and possibly boost the token’s price when increased supply pushes it down.
For instance, on January 17, the SHIB token burn surged by 613% within 24 hours, and the coin broke the bearish traders’ expectations, rising above 20% on the day. However, a surge in price did not accompany the recent rise in the token burn rate.
Also, some SHIB whale activities indicate that top investors have lost faith in the meme coin as many whales keep moving chunks of Shiba Inu positions on exchanges.
? ? 3,312,307,240,798 #SHIB (38,257,148 USD) transferred from unknown wallet to unknown wallethttps://t.co/0mdLkwpPQQ
— Whale Alert (@whale_alert) January 26, 2023
This could mean that short-term traders don’t believe the asset couldn’t rise above the resistance level, helping them earn profit.
New SHIB Whales Emerge – What’s Next?
While some whales sell off their tokens, a new address is buying the dip, accumulating large amounts of SHIB tokens, and maybe awaiting the next bull market. Data shows that a new crypto wallet became a Shiba Inu whale address on Thursday, January 26, 2022.
The new wallet became a whale address after receiving 3.3 billion SHIB worth about $38.9 million. Etherscan revealed that the sending address moved funds from different wallets before transferring the tokens to the receiver, now the newest SHIB whale. This move further confirms our suspicion that smaller investors are giving up their positions.
According to the blockchain whale tracker, Whale Alert, the wallet also received 1 billion PAW tokens a few minutes after sweeping the SHIB token. With the current balance, the new whale is now the world’s 30th-largest SHIB holder.
This recent accumulation came after the world’s 26th-largest SHIB holder swept 150 billion tokens into its wallet. The token sweep occurred through four transaction clusters within three hours on January 23.
So while short-term investors might be selling their positions due to falling SHIB prices, some could be accumulating in anticipation of future gains from the upcoming Shibarium launch.
Shiba Inu is currently trading at $0.00001188 with a 24-hour increase of 1.28% and a 7-day price surge of 0.2%. In addition, the meme coin has seen a 14-day price surge of 22.1% and a 30-day rally of 41.4%.
Featured Image From Pixabay Kevin_Y, Chart From Tradingview
The Shiba Inu token, popularly known as Dogecoin, has recently seen an unprecedented surge in market prices, increasing its burn rate to an all-time high. This comes at a time when the cryptocurrency market is under intense scrutiny and regulations, with authorities and investors taking steps to evaluate and stabilize the volatility of the crypto-market.
The market surge of Dogecoin has been driven by immense speculation in recent months. Dogecoin has seen an increase in attention due to its enterprising meme culture and has witnessed significant growth since its launch in 2021. The rising demand for the token has had a huge impact on its burn rate, which refers to the number of tokens removed from the market, with many investors and traders rushing to invest in Dogecoin in order to take advantage of the soaring prices.
The estimated burn rate of Dogecoin has increased from 33% to nearly 87% over the past few weeks, a notable spike in the token’s market participation. As a result, there are now fewer tokens available for trading, resulting in an increase in prices. With the demand for the token far exceeding the supply, investors are seeking to capitalize on the shortage.
This unprecedented rise in Dogecoin’s burn rate has sparked questions among experts and observers. While some anticipate that the spike may be momentary and the market will eventually stabilize, others are concerned that this surge may be indicative of a bubble ready to burst. While Dogecoin has witnessed tremendous growth and development in recent months, the increasing burn rate should be viewed with caution.
Given the current market volatility, the cryptocurrency industry has to be vigilant in managing market prices. At the same time, investors and traders should be aware of the risks associated with highly speculative tokens like Dogecoin. As such, trading in Dogecoin should only be done on the understanding that there is a risk of rapid price fluctuations and movements.