In recent months, many new memecoins have emerged and gained substantial popularity. Despite these new tokens capturing a significant portion of the market share, Shiba Inu (SHIB) has continued to grow.
One contributing factor to Shiba Inu's sustained growth is its burn rate.
The recent spike in Shiba Inu’s burn rate has generated significant buzz within the cryptocurrency community. This burning process removes SHIB tokens from circulation, potentially reducing the overall supply.
Notably, the burn rate surged by an astonishing 3900% in just 24 hours, with one wallet alone contributing 4.03 million burned tokens.
This community effort, along with smaller burns from other members, has significantly decreased the circulating supply of SHIB.
Adding to the optimism, whales and major SHIB holders have been actively buying tokens. In total, nine whale wallets invested a substantial $35.2 million, acquiring 1.356 trillion SHIB tokens. This significant whale investment reflects their confidence in SHIB's future growth potential.
The combination of reduced supply through burning and increased whale buying has fueled hopes for a potential SHIB price rally among investors and traders.
SHIB was trading at $0.0000253, with its price declining by 1.60% over the last 24 hours. Despite increased whale accumulation, the price has mostly moved sideways.
Over the past three months, SHIB’s price has shown a bearish trend with multiple lower lows and lower highs. The recent sideways movement does not suggest a potential reversal in the near future.
Network growth has also declined, indicating that new addresses are losing interest in SHIB. If this trend continues and new users are not attracted to SHIB, it could further impact the token negatively and lead to a price decline.
Additionally, SHIB's velocity has fallen significantly, indicating that the frequency of token trading has decreased considerably over the past few days.
June 2024, Cryptoniteuae