Shiba Inu (SHIB) is once again attracting the attention of crypto whales as on-chain data shows a 240% spike in this crucial metric. Thanks to the rise in this on-chain metric, a massive price increase for the second largest meme coin based on market capitalization could be in the offing.

Shiba Inu sees 240% increase in large transactions

Data from the market information platform IntoTheBlock shows that Shiba Inu high volume trading volume increased by 240%, from 326.98 billion SHIB the day before to 781.4 billion SHIB on August 11th. This surge in high volume trading volume continued on August 12th, with a surge of over 93% to 1.51 trillion SHIB traded on that day.

The surge in high transaction volume suggests that crypto whales are actively accumulating Shiba Inu as the meme coin attempts to reclaim the $0.00002 price level as support. Data from IntoTheBlock showed that this whales released a significant portion of their holdings last week, as the crypto market faced a price drop.

However, now that the market is recovering, it is understandable that these whales would want to add to their positions, especially given the heights that Shiba Inu could still reach this bull runThese whales could also contribute to a huge price increase for Shiba Inu, given the impact they have on the market.

It is also worth mentioning that SHIB’s strong positive price correlation with Bitcoin is rising again, currently at 0.79. This is positive for the meme coin as its price could rise significantly as the flagship crypto reaches new heights. However, Shiba Inu community members still have reason to be concerned as other on-chain metrics paint a bearish picture for the meme coin.

The net network growth has stagnated, indicating a lack of new investors in the Shiba Inu ecosystem. Over 52% of holders are also still out of the money, threatening to derail any price recovery for the meme coin. Investors who are currently holding Shiba Inu at a loss can easily sell their tokens once they break even, increasing the selling pressure on the meme coin.

SHIB’s Burn Rate Increases by 573%

Facts The Shibburn website on fire tracking shows that Shiba Inu’s Burn Rate has surged by over 573% over the past seven days, with over 151 million Shiba Inu tokens burned during this period. This comes amid the network’s layer two The Shibarium transition to an automated combustion mechanism.

This transition means that 70% of the basic transaction fees earned on the network will be automatically converted to SHIB and burned. This is undoubtedly huge for SHIB’s priceconsidering how it could increase if more tokens be removed from circulation. Shibarium responsible for almost half of the 76 billion SHIB that burned in 2023.

However, network activity on the layer-2 network has slowed since the start of the year. It will need to recapture the highs of December 2023 if billions of Shiba Inu tokens are to be burned this year, courtesy of Shibarium.

According to data from CoinMarketCap, Shiba Inu is trading at around $0.00001372, up over the past 24 hours.

Main image created with Dall.E, chart from Tradingview.com