- An anonymous investor recently purchased 4 trillion Shiba Inu (SHIB) tokens.
- Despite a 6.04% daily drop, SHIB shows bullish signs, increased trading volume, and sustained buying pressure.
- Shibarium’s innovative token burn mechanism, using 70% of fees, sets a new precedent in SHIB’s market dynamics.
An anonymous investor recently purchased 4 trillion Shiba Inu (SHIB) tokens. Valued at $42 million, this transaction represents the largest individual SHIB purchase recorded in December. Uniquely, the transaction bypassed cryptocurrency exchanges, taking place directly between wallets. Whale Alert, a cryptocurrency wallet tracker, initially reported this substantial token transfer on X (formerly Twitter).
The Shiba Inu team’s recent confirmation that Shibarium, their layer two network, will initiate SHIB token burns starting January 2024 adds another layer to this development. This move by the whale could be a calculated bet on the potential effects of these burns. If Shibarium successfully implements token burns on a large scale annually, it could substantially impact the token’s value.
At press time, SHIB was trading at $0.00000964, showing a 6.04% decline over 24 hours and 89% below its all-time high from October 2021, per CoinStats.
However, various market indicators suggest a more optimistic long-term outlook. The 30-day average surpassing the 200-day average and the Relative Strength Index (RSI) hovering around 60 indicate sustained buying pressure. Additionally, the increased trading volume, reaching between $400 million and $900 million recently, reflects heightened market interest, partly fueled by whale activity.
Shibarium’s launch in 2023 and subsequent transaction spike underscore its significance in SHIB’s ecosystem. The network’s plan to allocate 70% of its base fees for SHIB token burns, with the remaining 30% for network maintenance, is strategic. Fees collected in Shibarium’s native token, Bone, will be converted to SHIB once they hit a $25,000 threshold, creating a systematic approach to token burning.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
