Shiba Inu, a meme-inspired cryptocurrency, has shown a significant 12% increase, outperforming broader market trends. This growth was driven by increased whale activity and heightened token burns.
Shiba Inu Rally and Whale Activity
Shiba Inu recorded a notable 12% rise following a volatile market phase. Over the past 48 hours, whale activity surged by over 525%. Many of these trades were valued between $1 million and $10 million each, supporting the token's upward price trend.
Impact of Token Burns on Price
The Shiba Inu ecosystem also experienced a sharp rise in token burns, with the burn rate increasing by as much as 3,400% in the same period. This reduction in circulating supply provided additional support for price stability, even amidst whale-driven movements.
Commentary on Whale Activity and Future Plans
Despite the strong price action and high whale activity, trading volume has remained low. SHIB’s trading volume fell by 28.44% to $228.63 million over the past 24 hours. The lack of corresponding volume growth may hinder further gains. Additionally, a significant whale deposit of 39,999,203,056 SHIB to Binance has drawn attention, which can influence market liquidity and price stability. Separately, SHIB developer Kaal Dhairya proposed an election for a 'SHIB president' to guide the ecosystem, which has faced criticism from parts of the community urging a focus on restoring investor trust.
In conclusion, while Shiba Inu has seen significant gains, it faces challenges with low trading volume that may threaten the sustainability of the current rally. Whale activity and token burns contribute to price support, but the future hinges on further market participation.
