- Shiba Inu sees large whale transactions of 4.25 Trillion $SHIB.
- Burning skyrockets by 5175% in the last 24 hours.
- 47 large transactions witnessed in the last 30 hours.
- Whales taking $SHIB out of exchanges which show increased investor confidence.
On December 25, 2023, 4.25 Trillion Shiba Inu tokens were withdrawn from various exchanges. The amount represents nearly 1% of the total $SHIB value in circulation. In addition there were staggering increases in the burn rates amounting up to 5175% of usual volumes.
Shiba Inu Whale Activity Jumps Up
The whale activity which took place over the last few days was much greater than their usual activity. The moved quantity is at least 4.25 Trillion $SHIB which amounts to $42.5 Million.
It must be noted here that Shiba Inu has been a favorite cryptocurrency of several Ethereum whales.
When such holders move their funds from one address to another, such transactions have to be recorded on chain and therefore, incur gas fees. The tokens to be burnt in case of Shiba Inu come from the gas fees.
Therefore, large transactions generate large gas fees which subsequently generate large burn rates.
Burn Activity Skyrockets with 5175% Increase
In the last 24 hours preceding the writing of this article, $SHIB burn rates skyrocketed. The graph below shows around 51.7 times increase than its initial value. The total number of tokens to be burned were at 54 Million $SHIB.
The two transactions which alone sent 25 Million and 20 Million $SHIB tokens (combined 45 Million $SHIB) were sent from the two addresses below:
In the preceding weeks too (first and second week of December 2023), the Shibarium network witnessed a jump in total number of transactions from 60 million to 150 million.
The last 30 hours alone witnessed more than 47 large transactions. Below is a screenshot of a few recent transactions.
Ongoing Burn Activity by SHIB Team Burns 33.6 Billion
Shiba Inu’s marketing manager who prefers to the name Lucy informed via Twitter of their massive burn campaign that led to the burning of $90,857 worth of $SHIB tokens. The four burn schedules till date have successfully burnt 33.6 Billion SHIB worth $363,600.
Token Burns and Its Benefits
Token burns are a way to decrease the cryptocurrencies in circulation. The decreased circulation leads to an increased value of the tokens that remain in circulation. This is due to the law of demand and supply which states that if the demand for a certain item is fixed, any reduction in supply will increase the price of the item.
The tokens which are burnt are sent to dead addresses which do not have keys like usual addresses. Therefore, coins and tokens that are sent to dead addresses cannot be recovered.
In the case of Shiba Inu, there are three burn addresses, two of which are dead addresses and another is a blackhole addresses. The third address sends $SHIB tokens directly to the Genesis block.
#NOTE: The Genesis Block is the first block of any blockchain.
Can SHIB Reach $1 with Burn Transactions
To reach $1 Shiba Inu needs to shed 99.99999% of its current supply, assuming prices remain constant. Though this number seems difficult to achieve, Shiba Inu’s lead developer Shytoshi Kusama has said that a long term goal of $Shiba Inu would be to remove 99.9% of the current supply from circulation.
We believe this might not appear as achievable in the near term, we can expect concrete actions in the longer run.
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