Key Insights
- SHIB investors increased holdings by 7.63 trillion, reaching 155.97 trillion SHIB as of January 20, 2025.
- Shiba Inu exchange reserves hit a record low of 98.4 trillion SHIB on January 21, 2025, a 27.4% drop since the year start.
- Shiba Inu burn rate spiked by 1000%, with over 6 million SHIB tokens permanently removed from circulation on January 24, 2025.
Shiba Inu (SHIB) has witnessed significant changes in accumulation and burn rates within the cryptocurrency market. All these factors could be very vital in determining its market price in the market.
SHIB Investor Accumulation Trends
According to the data of January 20, 2025, there is a significant increase in Shiba Inu among mid-cap investors.
In particular, addresses that own between 0.1% to 1% of the total SHIB supply have accumulated an additional 7.63 trillion SHIB bringing their total holdings to 155.97 trillion SHIB.
This surge in holding by the mid-tier investors means that there is increased confidence in the asset either to remain stable or to rise in the future.
However, this is different from the trend observed in the larger whale and retail accounts’ activity. The data suggests that these groups have slightly reduced their investments, which may mean that they are diversifying or reallocating within their cryptocurrency portfolios. The shifts can sometimes cause a change in the market and affect liquidity and price volatility.
Exchange Reserves and Market Liquidity
More so, the exchange reserves of the Shiba Inu token drastically dropped to 98.4 trillion SHIB on the January 21st, 2025. This is a 27.4% decline from the start of the year indicating a massive outflow of SHIB from exchanges.
Besides, a decrease in exchange reserves means that there are fewer tokens available to be exchanged in the market, which may lead to low liquidity. Nevertheless, it could increase the price if the demand is constant or increases.
In addition, the reduction in reserves could mean that investors are transferring their assets to private wallets or participating in staking processes.
This is a bullish signal among holders in the long term. The activities reduce the near-term selling pressure on the market which results in a stable or higher price environment.
Impact of Increased Shiba Inu Token Burns
Furthermore, the Shiba Inu community has boosted its token burn rate, and a huge surge was noted on January 24, 2025.
Over 6 million SHIB tokens were burned, which is a 1000% increase in the burn rate. Token burn is a process where a pre-defined amount of tokens is destroyed from circulation. This is usually done to raise the price of the token.
Hence, the massive burn rate could be due to the prevailing inflationary trends in the rest of the crypto market or a calculated effort to increase the utility of the token.
This may lead to the overall supply of tokens being cut down to give more worth to the remaining ones. The effect is likely to happen if there is no change or an increase in the demand for SHIB due to positive market sentiment.
At press time, Shiba Inu price (SHIB) was trading at $0.00002036, up by 0.81%. After a dip to $0.0000194, SHIB saw a sharp rise, briefly touching $0.00002011 before stabilizing. The current market cap stands at $12.04B with a significant 31.46% increase in 24-hour volume.
