Shiba Inu ($SHIB), the meme-inspired cryptocurrency that has been dubbed the “Dogecoin killer”, has witnessed a huge whale accumulation and a surge in token burning in the past few days, despite its price slumping by 10% in the last week.
According to data shared by on-chain analysis service Lookonchain, a cryptocurrency wallet withdrew 1.44 trillion SHIB tokens, worth $13.36 million, from leading cryptocurrency trading platforms Binance and Gate.io in just two days. The wallet, with the address 0xF633Cd…3493Bbac, made five transactions to accumulate the massive amount of SHIB tokens.
This whale movement came at a time when the price of the meme-inspired cryptocurrency has been dropping significantly, as SHIB lost around 10% of its value over the past week, and is up just around 7% over the past 12 months, compared to Bitcoin’s over 170% rise during the same period.
The whale accumulation could indicate a bullish sentiment for the future of SHIB, as the whale may be expecting a price recovery or a breakout for the token. Alternatively, the whale may be planning to use the SHIB tokens for other purposes, such as staking, lending, or burning.
SHIB Burn Rate Skyrockets by 27510%
Another factor that could influence the price of SHIB is the token burning, which refers to the process of removing tokens from circulation by sending them to addresses that no one controls, effectively reducing the available supply on the market. If the demand for the token remains constant or increases, the price could theoretically rise as a result of the reduced supply.
SHIB has seen a remarkable increase in its burn rate in the past few days, with several days witnessing triple-digit percentage growth in the amount of tokens burned. According to data from ShibBurner, a website that tracks the SHIB burning, the burn rate jumped by 27510% on January 9, 2024, reaching a staggering 8.6 billion SHIB tokens sent for permanent deletion. This represented a 160,598% increase from the previous day’s burn rate.
The burn rate is rising at a time when Shiba Inu’s team has partnered with domain firm D3 Global to allow users to acquire .shib domains. The partnership sees Shiba Inu become one of the first decentralized projects to partner with D3 to pursue a top-level domain via the Internet Corporation for Assigned Names and Numbers (ICANN). Some other networks have their own native addresses, with Ethereums’ ending in .eth.
The .shib domains will enable users to create websites, blogs, social media profiles, and other online identities using the SHIB token as the payment method. The domains will also support decentralized applications (DApps) and smart contracts built on the Shiba Inu network. The partnership is expected to boost the adoption and utility of the SHIB token, as well as increase the token burning, as a portion of the fees for registering and renewing the domains will be burned.
Shiba Inu Faces Regulatory Challenges and Competition
Despite the positive developments for the SHIB token, the project also faces some challenges and risks that could hamper its growth and popularity. One of them is the regulatory uncertainty and scrutiny that surrounds the cryptocurrency industry, especially in some jurisdictions that have imposed bans or restrictions on crypto-related activities.
For instance, Shiba Inu was recently one of the cryptocurrencies delisted from Uphold Canada, along with rival meme-inspired cryptocurrency Dogecoin (DOGE), Cardano (ADA), and a number of other cryptocurrencies. The decision was made in compliance with the new guidance from the Canadian Securities Administrators (CSA) that requires crypto platforms to register as securities dealers and follow strict rules.
Another challenge for Shiba Inu is the fierce competition from other meme-inspired cryptocurrencies, such as Dogecoin, Floki Inu, Kishu Inu, and many others, that are vying for the attention and support of the crypto community and the general public. Some of these competitors have also launched their own initiatives and innovations to increase their appeal and utility, such as Dogecoin’s integration with the Ethereum network and Floki Inu’s creation of a metaverse.
Shiba Inu will have to continue to deliver value and innovation to its users and investors, as well as overcome the regulatory and competitive hurdles, in order to maintain its relevance and popularity in the crypto space.
