Anika Begay
Shiba Inu (SHIB) is once again capturing the attention of crypto whales as on-chain data shows a 240% spike in this crucial metric. Thanks to the surge in this on-chain metric, a massive price rally for the second largest meme coin by market cap could be on the horizon.
Shiba Inu Sees 240% Increase in Large Transactions
Data from IntoTheBlock Market Intelligence Platform shows that Shiba Inu’s large trading volume increased by 240%, rising to 781.4 billion SHIB on August 11 from 326.98 billion SHIB the previous day. This surge in large trading volume continued on August 12, rising by more than 93% to 1.51 trillion SHIB traded that day.
The surge in large transaction volume suggests that crypto whales are actively accumulating Shiba Inu, as the meme coin seeks to reclaim the $0.00002 price level as support. Data from IntoTheBlock showed that these whales unloaded a significant amount of their stocks last week, when the cryptocurrency market suffered a price crash.
However, with the market recovering, it is understandable that these whales would want to add to their positions, especially considering the heights that Shiba Inu could still reach this running of the bullsThese whales could also contribute to a massive increase in prices for Shiba Inu, considering the impact they are known to have on the market.
It is also worth mentioning the strong SHIB positive price correlation with Bitcoin is on the rise again, currently at 0.79. This is a positive for the meme coin, as its price could increase significantly as the flagship cryptocurrency makes new highs. However, members of the Shiba Inu community still have reason to worry, as other on-chain metrics paint a bearish picture for the meme coin.
THE Net network growth is stagnant, suggesting a lack of new investors in the Shiba Inu ecosystem. Over 52% of holders are still out of money, which threatens to halt any price recovery for the meme coin. Investors currently holding Shiba Inu at a loss could easily sell off their tokens once they break even, thus adding selling pressure on the meme coin.
SHIB burn rate increases by 573%
Data from the burn monitoring website Shibburn shows that Shiba Inu Burn Rate has increased by over 573% in the last seven days, with over 151 million Shiba Inu tokens burned during this period. This is happening in the middle of the layer two network Shibario Transition to an automated combustion mechanism.
This transition means that 70% of the basic transaction fees earned on the network will be automatically converted into SHIB and burned. This is undoubtedly huge for SHIB Priceconsidering how it could increase more tokens are removed from circulation. Shibario accounted for for nearly half of the 76 billion SHIB burned in 2023.
However, network activity on the layer-2 network has been declining since the beginning of the year. It will be necessary to recover the highs seen in December 2023 if one wants to burn billions of Shiba Inu tokens this year, courtesy of Shibarium.
According to CoinMarketCap data, Shiba Inu is trading at around $0.00001372, up over the past 24 hours..
Featured image created with Dall.E, chart from Tradingview.com
