Due to price fluctuations, the consumption rate of Shiba Inu (SHIB) has significantly decreased.
Whale trading continues to affect SHIB's price, creating more volatility and making liquidity a concern.
Recently, the burn rate of Shiba Inu (SHIB) has fluctuated significantly, with a direct drop of 90.69% in the burn rate over the past 24 hours.
While burning tokens is intended to reduce supply and increase scarcity, thereby driving up prices, this measure has not significantly impacted SHIB's price so far.
As 2025 approaches, many people are starting to question whether the burning and whale trading activities can bring long-term value, or whether the overall market conditions will continue to overshadow these efforts.
Analysis of Shiba Inu's burn rate and price trends
Firstly, the burn rate refers to the speed at which tokens permanently exit the market. Theoretically, reducing supply should increase demand. However, recent data raises concerns.
In the past 24 hours, 506,465 SHIB tokens have been burned, a reduction of 90.69% from before. This significant drop shows a sudden slowdown in burning activity, especially since 10 hours ago, when the burn volume had increased by 578%.
However, from the weekly data, the burning situation shows some variations. A total of 65.19 million SHIB has been burned in the past week, an increase of 4.5% compared to the previous week. This indicates that although the burning rate has slowed in the short term, the community is still striving to reduce supply.
Price and Market Sentiment
In terms of price, SHIB has struggled to maintain the highs of November. Currently, the trading price of Shiba Inu is about $0.00002167.
Although there was a 1.69% increase in the past day, overall market sentiment remains sluggish. The Relative Strength Index (RSI) of the token indicates strong bearish sentiment.
At the same time, the On-Balance Volume (OBV) also indicates stagnation in demand, while a decrease in trading volume suggests a decline in retail participation.
Shiba Inu Whale Activity
It's worth noting that whale trading has played a significant role in shaping Shiba Inu's market dynamics.
According to an analysis of Santiment data by AMBCrypto, whale activity significantly increased during the key price surge of Shiba Inu in October and November 2024. This indicates a direct correlation between large transactions and SHIB's market momentum.
Interestingly, the latest data shows that whale trading volume remains high, with the number of transactions over $100,000 stabilizing at around 938,000, indicating that wealthy investors continue to pay attention to SHIB.
This increase in trading activity enhances market liquidity but also amplifies volatility, as large sell-offs may suppress price rebounds.
When whale activity combines with the burning mechanism, it acts like a double-edged sword—potentially exacerbating speculative price surges while also leading to increased corrections.
This dynamic is crucial for SHIB's short-term trend in 2025.
Despite the increase in whale trading and burning activities, they have not triggered a significant price surge. Why? Because macroeconomic uncertainties continue to affect investor sentiment.
SHIB relies on the liquidity brought by the burning mechanism and whale trading, but the lack of a broader practical application base limits its potential upside.
Entering 2025, SHIB's trend will still be influenced by these factors.
To achieve a price rebound and sustainable growth in the future, the network construction and adoption of SHIB will be key.
