Shib Burn Rate Soars by Almost 200% as Bullish Pivot Starts

The Shiba Inu (SHIB) burn rate skyrocketed by 191.69% in the 24 hours ending at 00:22 a.m. UTC on Feb. 9, 2024. Around 7.65 billion SHIB was removed from circulation amid heightened optimism from whales and off-chain speculators.

The latest burn has taken the number of coins torched to 410 trillion, leaving approximately 581 trillion in circulation.

SHIB Burn and Rising Interest Spike Price by 3.3%

The token’s price is up 3.8% compared to the past seven days and 0.3% in the past 24 hours. It is currently changing hands at $0.000009403.

Shiba Inu token burns are designed to increase the asset’s scarcity and counterbalance the impact of large transactions. So far, around 410 trillion of the one quadrillion supply of SHIB tokens have been sent to three burn wallets. The daily Shiba Inu burn rate peaked at 100 million tokens in the past month.

shib burn
30-Day SHIB Burn Rate | Source: SHIBA Burn Tracker

Read more: Shiba Inu — A Beginner’s Guide

More bullish on-chain news is the increase in new sign-ups to the SHIB Web3 blockchain ecosystem, Shibarium. Between Feb. 6, 2024, and Feb. 7, 2024, the number of new accounts rose from 33 to 207, according to Shibariumscan. At press time, the number of accounts stood at 63,661.

shib new accounts
New Shibarium Accounts | Source: Shibscan

In the off-chain world, investor sentiment is also improving. Open interest in SHIB futures is up to $24.9 million this week.

shiba inu open interest
SHIB Futures Open Interest (USD) | Source: Coinglass

Open interest is the number of outstanding cryptocurrency futures contracts that price speculators have not settled. Increases in open interest have foreshadowed earlier SHIB price increases.

SHIB Whales Flip After Last Month’s Retreat

The encouraging signs come after SHIB whales retreated in January 2024. There were only ten transactions of $100,000 or more on Jan. 28, while SHIB wallet inflows and outflows declined by 97.10% and 95.53%.

Previously, between Jan. 16 and Jan. 17, whales removed large amounts of SHIB from circulation. The $100,000 or more transactions moved approximately 5.9 trillion tokens worth $56.5 million in 18 transactions.

In response, SHIB’s price fell from $0.00000970 to $0.00000943, a decline of 2.8%. Furthermore, the number of SHIB holders moving assets declined from 81 to 18 in that period.

In contrast, the number of large transactions has trended upward since Feb. 3, 2024, starting at 7 and peaking at 68 on Feb. 8 before falling back to 28, still above the drop in mid-January. Moreover, data from IntoTheBlock, suggests that sentiment is edging out of bearish to neutral.

shib whales bullish
SHIB On-Chain Sentiment | Source: IntoTheBlock

Read more: Shiba Inu (SHIB) Price Prediction 2023/2025/2030

Earlier this year, lead SHIB developer Shyotshi Kusama confirmed several advancements to create a Web3 nation-state in the Shibarium ecosystem. These include creating a Web3 digital identity and monetary sovereignty. The shift in investor sentiment suggests these changes could occur imminently, although developers have yet to announce dates for product rollouts other than the recently launched Shibcals NFT project.

BeInCrypto has contacted Kusama for updates on the new changes but has not heard back at publication time.

Source: https://beincrypto.com/shib-burn-rate-soars-200-investors-turn-bullish/