Whale Activity Surges, SHIB Price Drops Despite DeFi Boom

• Shiba Inu (SHIB) became one of the most-purchased tokens in the last 24 hours, as whales bought the token in droves.
• The surge in whale activity was not backed up by the price action of the meme coin, as it fell by 1.41% from the previous day.
• The burn rate of Shiba Inu (SHIB) also dipped significantly, with 13 million tokens being burned in the last 24 hours, compared to the 37 million registered on the previous day.

In the last 24 hours, the Shiba Inu (SHIB) token has become one of the most-purchased tokens as whales have been buying it in droves. Data shared by WhaleStats reveals that 341, 296, 045 SHIB coins worth $3,002 were snapped up by whales during the above period. However, the surge in whale activity was not backed up by the price action of the meme coin, as it fell by 1.41% from the previous day, according to data from CoinMarketCap. This drop marked an end to the brief rally observed since the beginning of 2023, during which the coin locked in gains of about 11%. The market cap also contracted by 1.31% until press time.

In addition, the burn rate of Shiba Inu (SHIB) also dipped significantly, with 13 million tokens being burned in the last 24 hours, compared to the 37 million registered on the previous day. This was tracked by Shibburn, which monitors the burn activity of Shiba Inu. The surge in burn activity was previously thought to be one reason behind the price rise seen earlier.

The development of the token’s layer-2 blockchain solution Shibarium is also thought to be a factor in the recent activity surrounding SHIB. On 7 January, Shiba Inu developers announced on Twitter that every transaction on the Shibarium network would result in a 1% burn of SHIB tokens, leading to a positive expectation of price appreciation in the market.

The activity surrounding SHIB also follows a period of increased activity in the DeFi space. The overall DeFi market cap has grown by more than 200% since the start of 2021, with individual tokens such as Aave, Compound and Uniswap all experiencing significant gains. SHIB tokens have been able to capitalise on this DeFi boom and have been able to hold their own despite the recent drop in prices.

Going forward, it will be interesting to see if the activity surrounding SHIB can be sustained, or if the token will continue to experience a downward trend in price. Whatever the outcome, it’s clear that the DeFi space is continuing to grow and is becoming an increasingly important part of the cryptocurrency market.