Shiba Inu’s On-Chain Activity: Whales Make Moves, Burns Surge

Shiba Inu (SHIB) is still a hot topic among crypto investors, especially large ones. This is evident from the significant increase in their activity over the past week. This surge in whale activity coincides with a notable rise in SHIB burns, which could potentially drive the meme coin toward another rally.

Whale Transactions Skyrocket

Large investors, often referred to as whales, have been actively moving their SHIB holdings. Data from IntoTheBlock reveals a dramatic surge in large transactions (valued at $100,000 or more) between February 4 and 5. This surge represents one of the highest increases in 2024 so far.

The on-chain tracking website shows that the large transaction volume jumped from 544 billion SHIB (worth $4.88 million) on February 4 to 2.82 trillion SHIB (worth $25 million) on February 5. This marks an impressive 500% increase in a single day.

Interestingly, this surge in transaction volume was recorded across only 33 total transactions. While the number of transactions remained relatively low, the volume per transaction increased significantly, suggesting that whales are moving larger amounts of SHIB.

SHIB Burn Rate Spikes

Coinciding with the rise in whale transactions, the SHIB burn rate has also seen a significant increase. According to data from Shibburn, the SHIB burn rate surged by 282% over the past day. In the past 24 hours, a total of 6,643,089 SHIB tokens were burned across 7 transactions.

While the burns are substantial in terms of token count, they are less significant when viewed in terms of dollar value. Shibburn’s report indicates that the 6.64 million tokens burned in the 24-hour period are worth only $59.12.

Potential Impact on SHIB Price

The combination of rising whale transactions and increased SHIB burns could potentially signal a rally among investors. However, it’s important to note that the SHIB burn rate, in terms of dollar value, is still relatively small compared to the whale transaction volumes.

The most likely scenario for a recovery in SHIB’s price would be a general market recovery. As Bitcoin (BTC) continues to struggle to break above the $43,000 resistance level, altcoins like SHIB are expected to continue their slow decline. However, once Bitcoin shows signs of recovery, altcoins such as SHIB are likely to follow suit.