During the recent SHIB price crash, the Shiba Inu burn rate surged by over 12,800%, so the community expected a recovery due to the reduction in token supply.
The Shiba Inu (SHIB) emoji coin has recently suffered a price crash, falling by more than 10%. However, the Dogecoin-themed cryptocurrency has recently attracted attention for its sharp increase in token destruction rate. According to Shibburn, a platform dedicated to tracking SHIB token destruction, the destruction rate surged by about 16,600% on Tuesday, June 4.
Shiba Inu's burning rate soared to more than 12,800%
Despite the sharp increase in the Shiba Inu burn rate, SHIB prices have been trending downwards. Hence, this has sparked hopes that the price may rebound. Additionally, the sharp increase in SHIB token burns has sparked interest among traders and investors.
The burning process reduces the total number of SHIB tokens in circulation, which could increase the value of the token. According to Shibburn data, the burning rate of SHIB tokens has increased by a staggering 12,842.37% in the past 24 hours.
During this period, the SHIB community destroyed a total of 12.04 million tokens through various transactions. The wallet with the address 0x608… stood out and made the largest contribution.
This address destroyed 10.15 million SHIB tokens through two transactions, which is an important reason for the surge in the destruction rate. In addition, other community members have also initiated multiple Shiba Inu token destruction activities.
As a result of these large transactions, the total number of SHIB tokens destroyed has reached a staggering 410.72 trillion. The reduction in supply could be a key factor in pushing up the value of SHIB tokens. If demand remains the same or increases, its value could rise further.
From an economic perspective, stable or growing demand and reduced supply generally lead to higher prices. This principle also applies to cryptocurrencies such as SHIB. The recent surge in token burns has sparked a wave of optimism in the Shiba Inu community, hoping that it will have a positive impact on the value of the token.
Shiba Inu (SHIB) is expected to reach 10 cents
The Shiba Inu [SHIB] ecosystem has been holding on to the 1 cent dream for a long time. But the meme coin’s 191% year-over-year gain highlights its potential for greater dreams. As a result, the community would like to see SHIB reach the 10 cent level. But currently the asset is trading at $0.00002002, down 3% on a daily basis. Notably, SHIB is still 77% below its all-time high of $0.00008845.
While the asset is not far from its all-time high, it is still a long way from the 1 cent mark. Telegaon’s data suggests that SHIB could reach its desired price target around 2040. While that is still more than a decade away, it looks like it will take even longer to reach the 10 cent mark. Telegaon expects SHIB to reach $0.10 only by 2050.
Is a 10-cent goal too ambitious for the Shiba Inu?
The Shiba Inu ecosystem has made great strides in terms of utility. Memecoins are often criticized for lacking real use cases. But the SHIB network has been working to change that narrative through a series of developments. Beyond that, market adoption will help memecoins grow.
The large amount of Shiba Inu in circulation is a hindrance. However, increasing the amount burned can be beneficial to the growth of the asset. If the number of tokens burned continues to increase, the demand for the asset will increase along with the price. The launch of Shibarium seems to help this move, as a portion of the transaction fees on Shibarium are used to burn SHIB tokens. The overall market sentiment is also crucial as it determines the price trend of the meme coin.
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