On June 25th, dog-themed memecoin Shiba Inu (SHIB) witnessed a significant increase in its intraday token burn rate, triggering a spike in transactions, according to IntoTheBlock data. The blockchain analytics firm attributed this twofold surge in burn rate to large transactions worth over $100,000 conducted by whale traders even as SHIB Army continues to bank on the $0.001 SHIB price dream.
Furthermore, insights from Shiba Inu’s Official burn tracker, Shibburn, show that 37.23 million SHIB tokens were removed from circulation, reflecting a 459% jump in burn rate. As of press time, over 410 trillion SHIB tokens have been removed from circulation. Burning means permanently removing cryptocurrency tokens from circulation to create scarcity, boosting demand and market value.
However, the deflationary pressure on SHIB failed to spark a price rally as SHIB traded at $0.00001799 following the token burn. The increased activity among large investors, known as “whales,” along with the simultaneous drop in SHIB’s price, indicates that these big players are selling off their holdings to secure profits.
This is usually seen as a signal that whales believe the current price is a good time to cash out, possibly because they anticipate future price drops or want to realize gains.
Recent Volatility in Memecoin Market Amid Mt. Gox Compensation News and Broader Market Decline
Over the past month, Shiba Inu has witnessed a significant downward pressure, decreasing by 30% in value. This downtrend follows the decline of the broader cryptocurrency market. On June Monday, the memecoin sector experienced a 7% decrease, resulting in a price drop for assets in the category.
Popular meme coins, like DOGE, SHIB, FLOKI, and BRETT, saw price dips, including low-cap tokens such as ANDY and MUMU. Analysts believe this dip was triggered by news that Mt. Gox creditor compensation is set to begin in July.
In today’s trading session, meme coins have printed price gains, with green candlesticks flooding the sector. Dogecoin, the largest meme coin by market cap, has increased by 1.69% over the past 24 hours, trading at $0.1235.
Meanwhile, Shiba Inu, the second-largest meme coin by market cap, trades at $0.00001733, reflecting a 3.06% intraday rally.
