SHIB Burns Surge 62.58% as Shiba Inu Price Drops and Transactions Decline

The Shiba Inu community has witnessed an increase in the SHIB burn rate despite the cryptocurrency’s overall decline in price. 

According to data from Shibburn, the past 24 hours saw a 62.58% rise in the SHIB burn rate. This equates to 6,985,600 SHIB coins being permanently removed from circulation through ten burn transactions. Among these transactions, the most notable burns included amounts of 2,555,239, 1,500,000, and 1,045,369 SHIB.

Over the past week, the community has burned a total of 57,671,544 SHIB, a reduction of nearly 57% compared to the previous week’s burns. Despite this weekly decrease, the overall amount of SHIB burned since its launch remains substantial, totaling 410,726,422,225,031 SHIB from the initial quadrillion supply.

HOURLY SHIB UPDATE$SHIB Price: $0.00002383 (1hr -1.77% ▼ | 24hr -3.80% ▼ )
Market Cap: $14,172,538,490 (-2.80% ▼)
Total Supply: 589,273,577,774,968

TOKENS BURNT
Past 24Hrs: 6,985,600 (62.58% ▲)
Past 7 Days: 57,671,544 (-56.28% ▼)

— Shibburn (@shibburn) May 20, 2024

Currently, the circulating supply of Shiba Inu stands at 582,992,864,057,113 SHIB. Additionally, 6,280,713,717,854 SHIB have been locked in various staking platforms. The ongoing burns and staking activities highlight the community’s efforts to reduce the available supply, which could influence the coin’s value over time.

Shiba Inu Price Performance

Despite the increased burn rate, the price of Shiba Inu has experienced a significant decline. Over the past 24 hours, according to CoinMarketCap data, SHIB’s price dropped by over 0.31%, moving from $0.00002504 to $0.00002408. This decline follows a period of relative stability, where the price had been hovering within a narrow range for several days.

In addition to the price drop, there has been a noticeable decrease in the daily transaction count. From a recent peak of 16,900 transactions on Saturday, the number has plummeted to 11,910. This marks a drastic reduction from the 562,990 transactions recorded on Shibarium on April 17.

The drop in transaction activity may be attributed to recent upgrades on the Shibarium platform. Last week, Shytoshi Kusama, a figure in the SHIB community, announced the bridging of a new version of the ShibaSwap decentralized exchange (DEX) from Ethereum to Shibarium. This upgrade is intended to expand the opportunities available to SHIB users and enhance the platform’s functionality.

Despite these upgrades, the total number of transfers on Shibarium has increased to 417,490,509, with 1,803,114 connected wallets. However, the anticipated increase in transaction activity following these upgrades has yet to materialize, contributing to the observed decline in daily transactions.

Whale Transactions and Market Implications

Shiba Inu has also seen a recent surge in whale-tier transactions, indicating potential volatility in the market. In the last 24 hours, there have been 82 large transactions totaling 1.7 trillion SHIB. This level of activity is among the lowest in the past week, suggesting a possible lack of sustained buying interest. The transaction volume also reflects this trend, with a notable decrease to $40.48 million from the seven-day high of $223.76 million.

Technical analysis indicates that SHIB has been struggling to break through the 50 EMA. The Bollinger Bands are narrowing, which typically suggests an upcoming spike in volatility. However, without substantial trading volume, this volatility may not result in price movement. The MACD histogram shows a declining trend, indicating weakening bullish momentum.

SHIB/USD 1-hour price chart (Source: TradingView)

The whale transactions, while substantial, represent internal shuffling or consolidation rather than genuine market interest. This is evident from the relatively flat price movement despite high transaction volumes. For SHIB to experience a price surge, consistent buying pressure and increased trading volume are necessary. Currently, neither is available, leading to a consolidation phase for Shiba Inu.