The WazirX incident could have grave consequences for this popular memecoin.
- A hacker stole and sold 5.43 trillion SHIB tokens worth $92 million Whale activity and a surge in SHIB burn rate spurred hope for the memecoin’s holders
Shiba Inu (SHIB) has been quite volatile lately. After a short-term rally, SHIB was met with resistance around $0.00001889, before retracing back to $0.00001723 on the charts.
Source: SHIB/USD, TradingView
Consequences of the massive security breach
The aforementioned price action transpired as reports broke out over a hacker stealing 5.43 trillion SHIB tokens, equivalent to 26,535 ETH or $92 million, and then selling it all off. This huge sale dealt a heavy blow to SHIB’s market structure, causing panic among investors who started shorting their SHIB.
The bearish pressure on the memecoin’s price was intensified by the additional circulating supply resulting from this transaction being dumped back into the market.
Whales become active again
And yet, big investors have started to show some interest again, despite the sustained decline seen lately across the memecoin’s market.
In fact, AMBCrypto analysed Santiment’s SHIB whale activity to assess these whale behaviors. The data revealed a spike in activity, with the ratio standing at 52% at press time.
Here, it’s worth pointing out that the spike correlated with the whale urge to regain market control after this unexpected key transaction.
Source: Santiment
SHIB is burning again
That’s not all though as SHIB’s burn rate has risen exponentially by 454.08% in the last 24 hours alone.
The surge in burn rate left a total of 48 million Shiba Inu burned. Such a hike in burned tokens reduces the circulating supply and brings stability, if not helping in the price’s recovery.
Source: SHIBBurn
Shiba Inu’s (SHIB) price was dealt a hard blow owing to the WazirX security breach.
However, a hike in whale activity and a surge in burn rate might be coming at a good time for the popular memecoin.
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