Shiba Inu (SHIB) started August with a price decline, but on-chain data shows that 83 million tokens were burned in the first days of the month. At the same time, large holders — commonly referred to as whales — have been accumulating the token during the dip, according to market watchers.
Burn rate picks up
The burn mechanism, which permanently removes tokens from circulation, saw a notable increase. The 83 million SHIB burned in early August represents a significant uptick compared to recent weekly averages. While the exact trigger for the accelerated burn rate is unclear, some traders see it as a potential signal of a strategic play by the project's community or developers.
Whale activity during the dip
As the price of SHIB fell, whale wallets began buying. Data from blockchain trackers shows that addresses holding large amounts of SHIB increased their positions. This kind of accumulation during a price drop often suggests that major investors expect a rebound or are positioning for a longer-term hold.
What the rising burn rate could mean
The combination of a rising burn rate and whale accumulation has led some observers to speculate about a possible breakout. However, the token's price remains under pressure, and the broader crypto market has been volatile. The burn mechanism reduces supply over time, which in theory could support price if demand holds steady or increases. But whether this will translate into a sustained rally is an open question.
For now, the market is watching whether the burn rate continues to climb and whether whale buying persists. The next few weeks could provide clues about whether these moves are a temporary reaction or the start of a longer trend. No official statements from the Shiba Inu team have been released regarding the recent activity.
