SHIB Whales Cause Price Drop as Network Transactions Surge
The price of SHIB tokens experienced a sharp decline as large transactions from whale holders caused a surge in network transaction volumes. Over the past 24 hours, transactions worth $56.5 million were recorded from those moving $100,000 or more. These transactions involved approximately 5.9 trillion SHIB tokens in 18 separate transactions, leading to a 2.8% decline in the price of SHIB.
SHIB Needs Burn Rate to Offset Whale Selling
The movement of tokens by a small number of whale holders, which constitutes around 5% of the token’s total supply, indicates bearish investor sentiment and reduces liquidity in the market. As a result, the chances of an immediate price increase are diminished.
Reduced Liquidity and SHIB’s Web3 Pivot
The reduced liquidity comes at a time when the SHIB community is actively working on its Web3 pivot. One of their initiatives involves building a Web3 identity centered on a .shib internet domain, providing a seamless sign-on service for websites, emails, and Web3 platforms.
Regular Burns Counterbalance Bearish Sentiment
In an effort to counteract bearish whale sentiment, regular token burns have been implemented. In the past 24 hours alone, approximately 53 million tokens were burned, bringing the total number of burned tokens in January to nearly 9.5 billion.
Latest News on SHIB Web3 Pivot
The latest development in the SHIB space is the launch of Shibacals, a project that allows minted NFTs to have a physical twin. The SHIB community also announced a Shibacals giveaway for three lucky winners who retweeted the Shibacals video.
Hot Take: SHIB Whales and the Future of SHIB
The recent activity involving SHIB whales and the decline in liquidity raises questions about the future prospects of SHIB’s price. However, with ongoing efforts to build a Web3 identity and regular token burns to counteract bearish sentiment, there is still potential for a rebound in the short term.
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