Shiba Inu burn rate explodes, buy signal emerges

The second-largest memecoin, Shiba Inu (SHIB), has gained bullish momentum as the asset’s burn rate registered a massive rise.

SHIB is down by 5.8% in the past 24 hours and is trading at $0.000009 at the time of writing. The asset’s market cap stands at $5.29 billion with a daily trading volume of $400 million. Shiba Inu dropped to $0.0000088 earlier today, but gained upward momentum over the past few hours.

According to data provided by SHIBBURN, over 8.3 trillion tokens, worth around $75,000 at the reporting time, were sent to a dead wallet. Of this tally, 8.2 trillion SHIB were burned in a single transaction.

Moreover, data provided by the market intelligence platform Santiment shows that whale transactions consisting of at least $100,000 worth of SHIB recorded a 40% increase over the past day — rising from 72 to 100 unique transactions. 

The Shiba Inu total open interest (OI) slightly declined in the past 24 hours. According to Santiment, SHIB’s total OI dropped from $13.8 million to $12.5 million while the exact amounts of short and long position holders are still not clear until further price movements.

Data also shows that SHIB holders are showing signs of accumulation. Per Santiment, Shiba Inu’s exchange outflows rose by 154% in the past 24 hours — surging from 914 billion SHIB to 2.31 trillion SHIB. 

In simple terms, investors have sent 2.31 trillion Shiba Inu tokens to self-custodial wallets.

Furthermore, as the accumulation grows, Santiment data shows that the SHIB price-daily active addresses (DAA) divergence indicates a strong buy signal — the price DAA divergence stands at 56.6% as there’s a smaller chance of whale manipulation.