- Data from Shibburn has revealed that Shiba Inu’s burn rate has skyrocketed by 1,068% in the past 24 hours smoldering over 51.7 million tokens.
- Additionally, over 940 billion tokens have been sold off by whales, causing its price to drop nearly 25% amid broader market volatility.
Shiba Inu (SHIB), the meme-inspired cryptocurrency, has captured significant attention after experiencing a dramatic 1,068% surge in its burn rate over the past 24 hours. However, this seemingly bullish development has coincided with a significant sell-off by large holders, leading to a tumultuous period for SHIB’s market performance.
Burn Rate Soars
Recent data from Shibburn have revealed that over 51.7 million SHIB tokens were burned within 24 hours, permanently removing them from circulation. In the past week, the total burn volume climbed to 2.44 billion tokens, signaling increased community efforts to reduce SHIB’s supply. Despite this, SHIB’s price plummeted by nearly 15% in a single day, reaching levels not seen since November.
This downturn in price is not entirely due to Shiba Inu based factors. The broader cryptocurrency market faced a bloodbath in the same period, with $1.5 billion worth of liquidations across various digital assets. SHIB alone saw $20 million liquidated, primarily from long positions in derivatives trading.
On-chain data from IntoTheBlock reveals that whales, entities holding at least 0.1% of SHIB’s circulating supply, offloaded approximately 940 billion SHIB tokens, valued at nearly $30 million. This mass exodus marks a sharp decline in net inflows to whale wallets, a trend that began earlier in December and culminated in yesterday’s sell-off.
While the whales’ sell-off did not initiate SHIB’s price drop, their activity exemplifies a cautious market sentiment ahead of significant economic events, such as the upcoming U.S. Consumer Price Index (CPI) report.
What Lies Ahead for SHIB?
The dramatic increase in SHIB’s burn rate highlights the community’s commitment to reducing token supply, potentially setting the stage for future price appreciation under favorable conditions. However, the immediate outlook remains uncertain due to the recent sell-off and volatile market conditions.
SHIB’s performance also hinges on developments in its ecosystem. As earlier reported, the Shibarium layer-2 network continues to attract attention, with its Total Value Locked (TVL) surging by 851% in recent weeks. Upcoming upgrades to Shibarium, including enhanced token burn mechanisms, could further support SHIB’s long-term value proposition.
Investors are advised to closely monitor whale activity and broader market trends, as these factors will likely dictate SHIB’s trajectory in the coming weeks. For now, the meme coin’s price remains under pressure, but the significant burn rate surge suggests that the community is preparing for a potential turnaround.
As the crypto market braces for further volatility, SHIB holders and enthusiasts remain hopeful that reduced supply and ecosystem advancements will eventually translate into sustained growth.
Meanwhile, at the time of writing, SHIB is swapping hands with $0.000026 marking a 13.47% decline in the last 24 hours.
