131.2 Million SHIB Torched, But There’s Big Catch Here

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As an analyst with over two decades of experience in the ever-evolving world of cryptocurrencies, I find myself intrigued by the recent developments within the Shiba Inu (SHIB) community. While it’s impressive to see such a large number of meme coins burned, the context seems less rosy when considering the significant price drop that coincided with this event.

According to Shibburn’s data tracking system, members of the SHIB community have managed to take SHIB meme tokens out of circulation. Yet, it’s important to note that while this large-scale removal might initially seem impressive, there are some complexities involved that may not paint such a rosy picture.

This coincided with the large SHIB price drop by roughly 10%.

131.2 million SHIB burned in past week

The recently published tweet revealed that over the past seven days, the SHIB community has transferred 131,204,000 SHIB to a dead-end wallet. Still, the weekly burn rate has plunged by 67.29%.

Regarding the daily Shiba Inu coin burns, the optimism is high as the burn rate has risen by approximately 69.28%. Yet, it’s important to note that the number of burned coins represents only about 6,181,175 and is 21.8 times smaller than before. This was achieved through eight separate transactions, with the largest ones burning over 2.87 million, 1.70 million, 1.46 million, and 1 million SHIB respectively.

1-Hour SHIB Price Update: Shiba Inu is currently trading at $0.00002419, down by 0.04% over the past hour and 5.81% over the last 24 hours.

— Shibburn (@shibburn) December 19, 2024

As per Shibburn’s data, approximately 410 billion SHIB coins have been moved to wallets that can no longer be spent, while over 584 billion SHIB coins continue to trade on the cryptocurrency exchange.

650 SHIB sold by early whale

Four years ago, as a researcher delving into the world of cryptocurrencies, I acquired over 15 trillion Shiba Inus. Recently, I’ve decided to part ways with a substantial portion of this holdings, selling two large batches totaling approximately 650 billion SHIB.

A substantial transfer of 400 billion SHIB, worth approximately $9.69 million, was monitored by @spotonchain as it was sent to Gemini, a U.S.-based cryptocurrency exchange co-founded by the Winklevoss twins, Tyler and Cameron.

According to @lookonchain, it appears that the same early Shiba Inu investor moved another 250 billion SHIB. The recipient’s location remains undisclosed. Following the purchase of 15.2 trillion Shiba Inu tokens and recent sales, this ‘whale’ now holds approximately 2 trillion SHIB, equivalent to around $48.54 million in conventional currency.

SHIB market performance

Over the last day, the second largest canine-themed cryptocurrency has stopped by approximately 10%, losing the $0.00002617 level and landing at $0.00002338. By now, SHIB has recovered by 4.27% and is trading at $0.00002440.

As an analyst, I observed a ripple effect in the cryptocurrency market, with Shiba Inu (SHIB) included, following the unexpected dip of Bitcoin when Fed Chair Jerome Powell announced that the anticipated interest rate reduction would be 25 basis points instead of the 100 basis points that the global crypto community had been anticipating.

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2024-12-19 15:19