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Shiba Inu: Unusual burn transaction and everything that paper hands should know
Written by Written by Saman Waris
Reviewed by Reviewed by Saman Waris
Updated January 9, 2023
Shiba Inu: Unusual burn transaction and everything that paper hands should know
  • SHIB token burn climbed one wallet burned over 14 million tokens.
  • The value and volume increased but on-chain data showed that SHIB was very much in decline.

The concept behind the Shiba Inu [SHIB] burn strategy was to reduce the token supply and increase its value but the meme coin has repeatedly failed to achieve these objectives. Interestingly, Etherscan showed that there was a recent colossal transaction pertaining to the SHIB burn activity. 

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According to the details of the transaction, a single wallet burned 14 million SHIB. Of course, SHIB’s daily burn rate runs into millions of tokens. However, it was uncommon for one wallet to rake in such volume.

Following this transaction which occurred four hours before press time, Shibburn reported that the burn activity spiked about 1395% in the last 24 hours. This brought the total SHIB burn supply to 410.38 trillion.

SHIB burn data
Source: Shibburn

With respect to its price, SHIB produced a 4.09% uptick from the previous day. This increase assisted the value to exchange hands at $0.0000087. In addition, the 24-hour trading volume acted in accordance with the price trend.  

According to Santiment, the SHIB volume recorded a 125% surge within the period. This inferred a good reflection of traders’ attempt to jump into the SHIB ship irrespective of a profit registered or loss accrued. 

Meanwhile, its network growth was not one to be thrilled about. The reason for this was that it hit its lowest point in over six months. At press time, Santiment data showed the network growth to be at 533.

At the position, it meant that SHIB was not part of the top projects enjoying new onboarding of addresses. So, traction directed at the Shiba Inu network was at a great loss.

Drought in SHIB land still

On looking at the active address data, on-chain data revealed that there was a remarkable increase up until 8 January. But at the time of writing, the 24-hour active addresses had decreased to 5354.

The implication of this decline was that the users who sent or received SHIB were fewer than those who interacted with the SHIB network the day before.

Shiba Inu volume and network growth
Source: Santiment

A 62.1x hike on the cards if SHIB hits Bitcoin’s market cap?

Due to this decrease, the one-day SHIB circulation also fell to 341.2 billion. An assessment of the circulation showed that there had been constant irregularities in the day-to-day flow.

While some days were filled with hikes, others chose to dwindle. So, the decrease aligned with the active addresses data of a limited amount of SHIB used in the last 24 hours.

Shiba Inu active addresses and circulation data
Source: Santiment

Besides the discouraging state of the meme, holders could still revel in the fact that SHIB was diving into partnerships and increased utility. Recently, the official Twitter page of the token announced that there could be another major collaboration in the works.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.

Saman Waris

Editor

Saman Waris works as a Senior News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins.

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