The recent surge in whale activity and the increasing adoption of Shibarium-based DeFi protocols have greatly contributed to the Shiba Inu burn rate.
On a weekly time frame, the price of Shiba Inu has been steadily rising, characterized by higher highs and higher lows, indicating a growing buying pressure.
Shiba Inu (SHIB), the second largest meme coin in terms of market capitalization, boasts a mature ecosystem thanks to the Shibarium layer two scaling solution. With over 1.37 million on-chain holders, the coin has established itself as a prominent player in the industry. Currently, the Shibarium network has attracted around $792k in locked funds from a dozen decentralized financial platforms, led by Marswap, ChewySwap, DogSwap, and PunkSwap.
Given the fierce competition in the meme coin sector, the significance of the Shibarium network cannot be understated. Over the past year, various meme coins have emerged on different blockchains, such as BONK on Solana, Memecoin (MEME) on Ethereum, and Coq Inu (COQ) on the Avalanche network. Additionally, meme coins like Dogecoin (DOGE), backed by Elon Musk, pose strong competition.
Taking a closer look at the Shiba Inu burn rate and whale activity, there has been a notable increase in whale activity, indicating growing demand from institutional investors and retail traders. Furthermore, Shiba Inu enjoys a liquidity pool of over $7 million on Uniswap alone, all locked through smart contracts.
According to on-chain data, a whale trader recently transferred approximately 4.2 trillion SHIB tokens, worth around $37 million, at a fee of about $3 on the Ethereum network. Similar transactions have occurred on the Shiba Inu network, leading to an increased SHIB burn rate.
In the past 24 hours, more than 140 million SHIB tokens have been sent to the dead wallet, marking a surge of over 400 percent, as reported by the Shibburn website. This brings the total amount of SHIB tokens removed from circulation to approximately 410.7 trillion, which represents around 41 percent of the total circulating supply. It’s worth noting that the Ethereum community, including co-founder Vitalik Buterin, has shown tremendous support for the Shiba Inu network, with Buterin sending the majority of the 41 percent to null addresses.
In terms of market outlook and price action, Shiba Inu has experienced a drop in price alongside Bitcoin due to increased selling pressure. Additionally, the approval of 11 spot Bitcoin ETFs in the United States has triggered a sell-off, which could potentially lead to a 10-20 percent drop in total market capitalization.
Despite these challenges, the Shibarmy has witnessed significant growth, particularly after the successful launch of the Shibarium layer two scaling solution. This has significantly improved the overall liquidity of SHIB, as the meme coin is now available for trading on various DeFi protocols and centralized exchanges. However, in the past 24 hours, Shiba Inu’s price has declined by more than 6 percent, reaching a trading value on Tuesday.
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