Shiba Inu Records 240% Spike In This Key Metric

Shiba Inu (SHIB) is again catching the eye of crypto whales as on-chain data shows a 240% spike in this significant metric. Due to the surge on this on-chain metric, a large price rally for the second-largest meme coin by market cap could be on the horizon.

Shiba Inu Records 240% Surge In Large Transactions

Data from the market intelligence platform IntoTheBlock shows that Shiba Inu’s large transaction volume surged by 240%, rising to 781.4 billion SHIB on August 11 from 326.98 billion SHIB the day gone by. This surge in large transaction volume continued on August 12, rising by over 93% to 1.51 trillion SHIB being traded on that day.

Source: IntoTheBlock

The surge in large transaction volume suggests that crypto whales are actively accumulating Shiba Inu because the meme coin looks to reclaim the $0.00002 price level as support. Data from IntoTheBlock showed that these whales offloaded a major amount of their holdings last week because the crypto market suffered a price crash.

Nonetheless, with the market recovering again, it’s comprehensible that these whales will wish to add their positions, especially considering the heights that Shiba Inu could still reach in this bull run. These whales could also contribute to a large price rally for Shiba Inu, considering the impact they’re known to have available on the market.

Additionally it is value mentioning that SHIB’s strong positive price correlation with Bitcoin is again on the rise, currently at 0.79. This represents a positive for the meme coin as its price could significantly increase because the flagship crypto records recent highs. Nonetheless, Shiba Inu community members still have cause to be frightened as other on-chain metrics paint a bearish picture for the meme coin.

The net network growth has stagnated, suggesting an absence of latest investors within the Shiba Inu ecosystem. Over 52% of holders are also still out of the cash, which threatens to disrupt any price recovery for the meme coin. Investors currently holding Shiba Inu at a loss could easily offload their tokens once they break even, thereby adding selling pressure on the meme coin.

SHIB’s Burn Rate Spikes By 573%

Data from the burn tracking website Shibburn shows that Shiba Inu’s burn rate has spiked by over 573% within the last seven days, with over 151 million Shiba Inu tokens burned during this era. This comes amid the layer two network Shibarium’s transition to an automatic burn mechanism.

This transition signifies that 70% of base transaction fees earned on the network can be robotically converted to SHIB and burned. That is undoubtedly massive for SHIB’s price, considering the way it could surge as more tokens get faraway from circulation. Shibarium accounted for nearly half of the 76 billion SHIB burned in 2023.

Nonetheless, network activity on the layer-2 network has declined for the reason that start of the 12 months. It’s going to must reclaim the highs recorded in December 2023 if billions of Shiba Inu tokens are to be burned this 12 months, courtesy of Shibarium.

In response to data from CoinMarketCap, Shiba Inu is trading at around $0.00001372, up within the last 24 hours.