As of December 25, 2023, an unprecedented movement occurred within the Shiba Inu (SHIB) ecosystem, witnessing a withdrawal of 4.25 trillion SHIB tokens from various exchanges. This significant amount constitutes nearly 1% of the total SHIB value currently in circulation. Remarkably, during this period, the burn rates experienced an astronomical surge, reaching an increase of up to 5175% compared to their regular volumes.
Elevated Whale Activity in Shiba Inu The recent surge in whale activity over the past few days far surpassed their usual engagements. An approximate amount of 4.25 trillion SHIB, equivalent to $42.5 million, was mobilized.
It's worth highlighting that Shiba Inu has garnered favor among several Ethereum whales, prompting substantial movements of their funds between addresses. These transactions, crucially, necessitate on-chain recording and consequently incur gas fees. Notably, the tokens utilized for burns in Shiba Inu originate from these gas fees.
Consequently, large-scale transactions incur substantial gas fees, consequently leading to elevated burn rates.
Unprecedented Surge in Burn Activity by 5175% In the 24-hour window preceding this report, the SHIB burn rates skyrocketed. The graph displays a staggering surge, around 51.7 times higher than its previous values. The total tokens burned amounted to 54 million SHIB.
The two transactions, alone accounting for 25 million and 20 million SHIB tokens (a combined 45 million SHIB), were conducted from the following addresses:
0xc34b1afac96fbdb26d522a90bddfb730e1bb6e01e2ade0f201408b120ada1478 0xea63f95225250f7099c8cd145ebd89bed958d4d303fd48d5d6bf621e6d57f378
In the preceding weeks, specifically during the first and second week of December 2023, the Shibarium network observed a surge in total transactions, escalating from 60 million to 150 million.
Within the last 30 hours, over 47 substantial transactions were recorded. Below is a snapshot showcasing some recent transactions.
Ongoing Substantial Burn Transactions in Shiba Inu as of December 25, 2023
Continued Burn Activity by SHIB Team Results in the Burn of 33.6 Billion Lucy, Shiba Inu's marketing manager, disclosed via Twitter the extensive burn campaign that resulted in the incineration of $90,857 worth of SHIB tokens. To date, four burn schedules have effectively eradicated 33.6 billion SHIB tokens, amounting to $363,600.
Token Burns and Their Impact Token burns serve as a mechanism to decrease the circulating supply of cryptocurrencies. This reduction in circulation often leads to an increase in the value of the remaining tokens. This principle aligns with the law of demand and supply, where a decrease in supply, with demand held constant, drives up the price of an item.
Burnt tokens are transferred to dead addresses lacking keys, rendering these coins and tokens irretrievable.
In Shiba Inu's case, three burn addresses exist, with two being dead addresses and one functioning as a black hole address. The third address channels SHIB tokens directly to the Genesis block.
Note: The Genesis Block signifies the first block in any blockchain.
Potential for $1 Valuation in SHIB via Burn Transactions For Shiba Inu to reach $1, it would need to eliminate 99.99999% of its current supply, assuming constant prices. While this figure appears daunting, Shiba Inu's lead developer, Shytoshi Kusama, has expressed a long-term aspiration to remove 99.9% of the current supply from circulation.
Achieving this in the near term might seem improbable, but concrete actions could be anticipated in the longer run.
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