Shiba Inu (SHIB) is again catching 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 might be on the horizon.
Shiba Inu Records 240% Surge In Large Transactions
Data from the market intelligence platform IntoTheBlock shows that Shiba Inu’s large transaction volume surged by 240%, rising to 781.4 billion SHIB on August 11 from 326.98 billion SHIB the previous day. This surge in large transaction volume continued on August 12, rising by over 93% to 1.51 trillion SHIB being traded on that day.
The surge in large transaction volume suggests that crypto whales are actively accumulating Shiba Inu as the meme coin looks to reclaim the $0.00002 price level as support. Data from IntoTheBlock showed that these whales offloaded a significant amount of their holdings last week as the crypto market suffered a price crash.
However, with the market recovering again, it is understandable that these whales will want to add their positions, especially considering the heights that Shiba Inu could still reach in this bull run. These whales could also contribute to a massive price rally for Shiba Inu, considering the impact they are known to have on the market.
It is also worth mentioning that SHIB’s strong positive price correlation with Bitcoin is again on the rise, currently at 0.79. This represents a positive for the meme coin as its price could significantly increase as the flagship crypto records new highs. However, Shiba Inu community members still have cause to be worried as other on-chain metrics paint a bearish picture for the meme coin.
The net network growth has stagnated, suggesting a lack of new investors in the Shiba Inu ecosystem. Over 52% of holders are also still out of the money, which threatens to disrupt any price recovery for the meme coin. Investors currently holding Shiba Inu at a loss could easily offload their tokens once they break even, thereby adding selling pressure on the meme coin.
SHIB’s Burn Rate Spikes By 573%
Data from the burn tracking website Shibburn shows that Shiba Inu’s burn rate has spiked by over 573% in the last seven days, with over 151 million Shiba Inu tokens burned during this period. This comes amid the layer two network Shibarium’s transition to an automated burn mechanism.
This transition means that 70% of base transaction fees earned on the network will be automatically converted to SHIB and burned. This is undoubtedly massive for SHIB’s price, considering how it could surge as more tokens get removed from circulation. Shibarium accounted for almost half of the 76 billion SHIB burned in 2023.
However, network activity on the layer-2 network has declined since the start of the year. It will need to reclaim the highs recorded in December 2023 if billions of Shiba Inu tokens are to be burned this year, courtesy of Shibarium.
According to data from CoinMarketCap, Shiba Inu is trading at around $0.00001372, up in the last 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
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