Shiba Inu Burn Rate Surges by 721% as Whales Accumulate $100 Million in SHIB Tokens

In the past 24 hours, the burn rate of Shiba Inu (SHIB) has skyrocketed by 721.17%, incinerating a staggering 77.4 million SHIB tokens. This surge in burn rate coincides with whales actively purchasing $100 million worth of SHIB over the last week.

As per WhaleAlert data, a significant whale conducted a transfer of tokens valued at $38.05 million from an undisclosed wallet to another on August 31. Subsequently, on September 2, another substantial whale moved $36.69 million worth of SHIB tokens from the Bitvavo exchange to a wallet of unknown origin. Finally, on September 4, yet another whale initiated a transfer of $35.69 million worth of Shiba Inu (SHIB) tokens from Bitvavo to another undisclosed wallet.

Why Are Whales Accumulating SHIB?

These whale transfers coincide closely with the relaunch of SHIB’s layer-2 network, Shibarium. Notably, Shibarium has recently achieved significant milestones, surpassing 1.1 million transactions and registering 1.1 million wallets. Despite an initial launch hiccup marked by high traffic, Shibarium has since stabilized and is handling the increased traffic more effectively. The notable increase in whale accumulation could be seen as a reflection of growing investor confidence in the project.

However, recent data from IntoTheBlock reveals a decline of 10.41% in large transactions for Shiba Inu (SHIB), despite the significant purchases made in the previous week. Furthermore, profits for SHIB holders have decreased by 7.56%. Currently, only 11% of SHIB holders are in a profitable position, while 83% are experiencing losses and 6% are at break-even.

Despite anticipation for a potential rally following the launch of Shibarium, SHIB’s price has struggled to surpass the $0.000008 level. In fact, the asset has been on a downward trajectory for the majority of this year. Shytoshi Kusama, the lead developer, has stated that an increase in adoption is crucial for SHIB to experience a price surge. At the time of writing, SHIB is trading at $0.00000772, showing a slight 1.66% increase in the last 24 hours.

Olasunkanmi Abudu

Olasunkanmi Abudu is a Web3 content writer with over five years of experience covering blockchain, decentralized finance, and digital assets. He specializes in producing well-researched and accessible content that explains complex technologies and market trends to both general readers and industry professionals.

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