Shiba Inu (SHIB) Inflows Have Spiked by 2952%

Shiba Inu (SHIB) inflows have surged sharply, with data showing a 2952% increase in large holder inflows.

Shiba Inu (CRYPTO: SHIB) saw a massive surge in large holder inflows, with new data from IntoTheBlock showing a 2,952% increase in 24-hour netflow.

What Happened: According to the blockchain analytics firm, large holder inflows rose from 238.91 billion SHIB to 6.42 trillion SHIB on May 7. This indicates a sudden rise in buying activity from addresses classified as large holders, who typically hold amounts over 100,000 units of cryptocurrency.

According to the IntoTheBlock platform, whale addresses, also known as "large holders," saw a major spike in inflows. These addresses typically represent institutional or high-net-worth investors. The increase in Shiba Inu (CRYPTO: SHIB) inflows entering these wallets signals large-scale accumulation by these investors.

On Monday, May 8, the large holder netflow surged from 132.54 billion SHIB to 6.21 trillion SHIB, showcasing a staggering increase of over 6,050%. Shiba Inu inflows highlight the difference between tokens entering and exiting whale wallets, with a positive netflow suggesting whales are actively accumulating the cryptocurrency.

This shift in Shiba Inu's derivative market also follows a period of low activity during early May. Analysts often keep a close watch on changes in these indicators, as whales typically engage in accumulation after price pullbacks. They frequently transfer their purchases to cold storage addresses, which signifies longer-term confidence in the asset.

Shiba Inu Price Action: Staying nearly constant with respect to the daily Simple Moving Average (SMA) 50 for several days, SHIB price moved upward amid the increasing large holder activity. The price rose from $0.00001274 to an intraday high of $0.00001408 on May 8.

As of the latest update, the SHIB price was observed to be trading at around $0.00001400, exhibiting an 11% surge from the intra-day high. This increase came as the broader cryptocurrency market showed signs of strength. Bitcoin Price Today: Reaches $101K In anticipation of May 12's Block Reward Halving, Bitcoin (BTC) price surged toward the $102,000 mark.

This price action brought renewed interest to many crypto traders and investors. SHIB’s move has also placed attention on its resistance near $0.000015. Traders are also watching the SMA 200 at $0.0001265. If the price manages to sustain above the SMA 50 and breaches the resistance, another leg up is possible. The SMA 50 may act as support in the short term if momentum holds.

Shiba Inu Derivatives Market: Open interest in SHIB derivatives saw a 20.72% rise to reach $182.67 million. Trading volume also underwent a substantial increase of 81.79%, bringing the total to $167.61 million. These figures highlight heightened participation from traders who are making bets on the cryptocurrency's price movements.

The number of short-term traders, those holding less than 30 days, saw an addition of 6.66%. This could be indicating a fresh influx of interest from traders who are actively engaging with Shiba Inu. Analysts often follow these trends to anticipate potential price swings and volatility.

Traders entering during a phase of low volatility may contribute to pushing prices higher if momentum continues. If SHIB price manages to sustain at current levels, it could lead to short-term traders having a greater impact on future rallies.

Shiba Inu Burn Rate: As per the data from Shibburn, over 15.8 million SHIB tokens were burnt in the past 24 hours. This reported a 4,833.98% rise in the burn rate. Most of this was from a single transfer of 15.29 million tokens.

Token burning is a process that reduces the circulating supply of a cryptocurrency, which can theoretically increase the value of remaining tokens. The Shiba Inu team has been pushing its Shibarium layer-2 network to sustain the burning process. On Shibarium, each transaction uses BONE and part of the fee will be used to buy SHIB and send it to a burn address. The Shiba Inu team also announced that 30% of the gas fees will be used to buy SHIB and send it to a burn address.

The circulating supply currently stands at over 589 trillion tokens. Burning remains a core strategy to manage token supply.

Shiba Inu Community Statement: Shiba Inu marketing lead Lucie, had a light-hearted interaction with the community. A community member stated that they had a "feeling" that SHIB would