A single large address burned 85,795,990 Shiba Inu tokens, causing a major spike in the daily burn rate.
Summary
- Shiba Inu saw a dramatic spike in daily burn rate.
- One whale was behind the large daily spike, burning 85 million SHIB.
- Still, the transaction is even the biggest burn in the last two weeks.
Burn rates remain a keydriver of Shiba Inu’s (SHIB) medium- to long-term performance. On Wednesday, August 13, SHIB’s daily burn rate surged 48,247.45%, with almost 88 million tokens burned in the past 24 hours. This coincided with a 6% daily gain in SHIB’s price.
The spike in the burn rate was largely driven by a single whale wallet, which alone burned 85,795,990 SHIB tokens, according to data from Shibburn. Still, the transaction was not the biggest burn that Shiba Inu saw recently.
The latest large burn occurred on July 29, with 18 million SHIB tokens burned. What is more, just one day prior, one whale burned 600 million SHIB tokens, representing by far the biggest burn in the past 30 days.
Shiba Inu price moves sideways despite token burn
Interestingly, despite the major late-July burn, SHIB’s price moved in the opposite direction. Between July 28 and August 2, the token fell from $0.000014 to a monthly low of $0.000011. It has since recovered to $0.00001386.
This drop coincided with Bitcoin’s fall from above $119,000 to a monthly low of $122,321 in a few days. What is more, Shiba Inu’s recovery in the last seven days also coincided with Bitcoin’s (BTC) recovery.
While token burns are important for Shiba Inu’s long-term outlook, they rarely drive prices higher in the short term. Instead, SHIB’s day-to-day price action remains closely tied to broader crypto market sentiment, particularly Bitcoin’s performance.
