Find out how Shiba Inu has been developing in recent months
Over the past few days, Shiba Inu (SHIB) has had major highlights that have positively impacted the sentiment of the altcoin meme community. But what were these developments, and what can we expect for altcoin prices?
In late November 2022, SHIB again drew attention by managing to grow even as FTX collapsed, surpassing Solana (SOL).
Although SOL is a cryptocurrency with strong fundamentals and the Shiba Inu is not yet considered an excellent choice for investment, the so-called Ethereum killer has been heavily influenced by his presence in the Sam Bankman-Fried (SBF) kingdom.
This move helped the altcoin grow in another arena.
Shiba Inu’s Addresses Reach New Heights
Investor interest in Shiba Inu (SHIB) has remained intact even with the bear market. As an example, there has been a steady increase in the number of addresses holding tokens.
Recently, the SHIB holder base reached a new milestone. The meme coin now totals more than 3 million addresses created.
According to Glassnode data, the growth in the number of altcoin holders, although slow, is steady.
Burn rate and large investors
Without a doubt, one of the most widely used ways to make the price of an altcoin rise is the burning of tokens, a method present in Shiba Inu.
Burning tokens essentially involves removing a digital asset from circulation and reducing its supply. The main purpose of token burning is scarcity, which can generate asset appreciation.
In fact, this is one of the most attention-grabbing modalities of Shib. On Mar. 19, 2022, for example, some 190 million tokens were subtracted from the currency’s circulating supply from seven transactions performed within 24 hours.
As reported by U.Today, on December 17th, the Shiba Inu burn rate increased by 224.69%, sending a total of 45,440,894 SHIB meme coins to unspent wallets.
The altcoin has also returned to being one of the main smart contracts on the Ethereum network and being one of the most bought tokens by the main altcoin whales on the market.
On-chain data from Shiba Inu shows a 200% increase in large altcoin transactions. In other words, whales are doing great things with the coin.
Why isn’t price of Shiba Inu reacting?
Despite the mentioned factors, the token’s price is still falling. First, the current situation on the crypto market has impacted this movement. After all, sellers are not only acting on SHIB but important cryptocurrencies such as Bitcoin (BTC) and Ethereum are also undergoing a correction.
Furthermore, the number of active SHIB addresses remains low despite an increase in the number of portfolios. Despite a 35% increase in registered addresses this year, active addresses currently account for less than 5% of the total.
SHIB whales, on the other hand, even though they are accumulating, do not have as much impact as in 2021. At times, Shiba Inu has still lost ground to other tokens, as was the case with Decentraland’s MANA, which in early December was accumulating more than the meme altcoin.
Apart from this, aggressive selling is also visible in whale trading. For example, in late November, a whale moved 1.8 trillion SHIB to Binance.
The token burns that could be a bullish catalyst for SHIB have not been a big draw for buyers. In fact, this event was already expected, as the withdrawal of tokens in circulation is no longer attracting investors, as was the case with BNB a few years ago.
At the start of the Binance token burn, the leading crypto exchange’s altcoin saw significant changes in price. However, tokens such as Shiba Inu and LUNC, for example, do not enjoy the same optimism as market demands increase.
