Shiba Inu (SHIB) is once again drawing the interest of major crypto investors, as recent on-chain data reveals a remarkable 240% increase in a key metric. This surge suggests a potential price surge for the second-largest meme coin by market capitalization.
Shiba Inu Sees 240% Increase in Large Transactions
According to market intelligence platform IntoTheBlock, Shiba Inu’s volume of large transactions jumped by 240% to 781.4 billion SHIB on August 11, up from 326.98 billion SHIB the day before. This upward trend continued into August 12, with large transactions reaching 1.51 trillion SHIB, marking an additional 93% increase.
This increase in large transactions indicates that major investors are actively accumulating Shiba Inu, aiming to push the coin back to the $0.00002 support level. Recent data from IntoTheBlock shows that these investors had previously reduced their holdings during a market downturn. As the market recovers, these investors are likely looking to re-enter positions, potentially driving a significant price rally for Shiba Inu.
Additionally, Shiba Inu’s price correlation with Bitcoin has risen to 0.79, suggesting that SHIB might benefit from Bitcoin’s upward movement. However, there are concerns within the Shiba Inu community as other metrics present a bearish outlook. Network growth has plateaued, indicating a slowdown in new investor activity, and over 52% of holders are currently at a loss, which could impact any potential price recovery.
Read more: Coinbase Reenters Hawaiian Market After Seven-Year Absence
SHIB’s Burn Rate Rises by 573%
Data from burn tracking site Shibburn reveals that Shiba Inu’s burn rate has surged by 573% in the past week, with over 151 million SHIB tokens burned. This increase coincides with the Shibarium layer-two network’s shift to an automated burn mechanism, where 70% of base transaction fees are converted to SHIB and burned.
This automated burning process is significant for SHIB’s price, as it reduces the circulating supply of tokens. Shibarium was responsible for nearly half of the 76 billion SHIB tokens burned in 2023.
However, network activity on Shibarium has waned since the beginning of the year, and it will need to regain its previous activity levels to sustain high burn rates throughout 2024.
Cre: bitcoinist
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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