Shiba Inu is still at the forefront of crypto investors’ minds, especially large investors, as shown by the notable rise in their activity over the last week. This development also comes at a time when there has been a noted increase in the SHIB burn, and both of these developments could work hand in hand to propel the meme coin toward another rally.
Shiba Inu Whale Movements See Drastic Rise
Large investors in the Shiba Inu meme coin have been showing their hands lately with their on-chain transactions. According to data from IntoTheBlock, these large holders have been ramping up the rate at which they are moving coins.
The large transactions volume metric from IntoTheBlock witnessed a notable surge between February 4 and 5, accounting for one of the highest rises so far in 2024. These large transactions are those carrying $100,000 and above, and at current prices, this means transactions carrying a minimum of 11.3 billion SHIB tokens.
The on-chain tracking website shows that this metric rose from a low of 544 billion on February 4 to a high of 2.82 trillion tokens on February 5. Now, to put this in perspective, the former translates to a dollar value of $4.88 million, and the latter is worth $25 million. This means that the large transaction volume saw a surge of over 500% in a single day.
Interestingly, the surge in the transaction volume was recorded across only 33 total transactions. So, while the transaction numbers have not really gone up, the volume has, which suggests that whales are moving larger volumes of SHIB per transaction.
SHIB bulls struggle to hold up | Source: SHIBUSD on Tradingview.com
Coincidence With High SHIB Burn Rates?
While the large transactions volume was on the rise, another metric was also seeing a significant uptick, and that is the number of SHIB tokens being burned daily. Data from the Shiba Inu burn tracking website Shibburn shows that SHIB saw a 282% uptick in the burn rate over the past day.
In the past 24 hours, there have been a total of 6,643,089 $SHIB tokens burned and 7 transactions. Visit https://t.co/t0eRMnyZel to view the overall total of #SHIB tokens burned, circulating supply, and more. pic.twitter.com/2ZfruZazNO
— Shibburn (@shibburn) February 6, 2024
These burns, alongside the rise in whale transactions, could point to a rallying among investors. However, when looked at in terms of dollar value, the SHIB burn is less significant than the whale transaction volumes. Shibburn’s report shows that a little over 6.64 million tokens were burned in the 24-hour period, which is worth only $59.12.
From here, the most likely scenario for a recovery in the price of Shiba Inu would be a general market recovery. As the Bitcoin price continues to struggle to clear the $43,000 resistance, the slow bleed in the altcoins is expected to continue. However, once the tides turn for Bitcoin, altcoins such as SHIB are expected to follow not long after.
Source: https://bitcoinist.com/shiba-inu-on-chain-metric-rise/