Shiba Inu burn rate has skyrocketed by more than 300% during the recent decline in SHIB prices in the last 24 hours, so, due to supply shortages, it could see an improvement if other factors play in its favor. Is.
Shiba Inu (SHIB), the well-known meme coin, has once again attracted significant attention in the crypto community due to its recent developments.
As reported by Shiburn, a platform that tracks SHIB token burns, the burn rate of Shiba Inu saw a dramatic increase of more than 310% on Friday, May 31. This substantial increase in the burn rate has created market excitement among traders and investors.
Shiba Inu burn rate increased by 300%
The significant increase in SHIB’s burn rate has effectively reduced its market supply, potentially benefiting its toconomics in the long run. According to Sheeburn data, in the last 24 hours alone, the burn rate increased by 310.99%. During this period, a total of 9.74 million SHIB tokens were destroyed in various transactions carried out by the community.
Three specific wallets were particularly influential in this dramatic increase in burn rates. One of the key contributors was the wallet address 0xa9d1…, which transferred 4.91 million SHIB to the dead wallet through two major transactions an hour apart. The holder initially burned 2 million SHIB coins. After that, they transferred 2.91 million SHIB tokens to a dead wallet.
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Additionally, another wallet address, 0xc8d…, transferred 1.5 million SHIB to a dead wallet minutes before reporting time. These large transactions have been instrumental in driving Shiba Inu’s recent increase in burn rate.
Additionally, another community wallet, 0x608…, sent 1.04 million SHIB tokens to a dead wallet in the last 24 hours, further increasing the burn rate.
As a result, the total amount of SHIB tokens burned has reached 410.72 trillion. A decrease in the supply of SHIB is seen as a potential factor that could increase the value of the token.
In economic terms, a decrease in supply with constant or increasing demand usually results in an increase in prices, and this principle also applies to cryptocurrencies. This development has sparked optimism in the Shiba Inu community, with many traders and investors keeping a close eye on memecoin’s progress.
Will the price of SHIB increase?
Shiba Inu price had earlier managed to cross the key resistance level of $0.000025. Moreover, it has remained above this level despite the downturn.
At press time, SHIB traded down 7.41% on Friday, hitting $0.00002572. Additionally, the second largest meme cryptocurrency boasted a market capitalization of $15.14 billion.
The 24-hour trading volume for SHIB has also seen a significant decline of 40.90%, reaching $1.01 billion. According to a previous report by itscryptobasic, if SHIB continues to trade above this critical resistance level, its price could potentially rise to $0.00003 or $0.00005. Additionally, a reduction in supply due to an increase in Shiba Inu’s burn rate may help the recovery.
In the long term, if the bullish momentum continues, SHIB could aim for a rally to $0.0001. However, if the SHIB crypto trajectory conforms to the current bearish trend, the next key support will be at $0.000024. Meanwhile, SHIB futures open interest fell 9.99% to $106.59 million, as Coinglass reports.
Additionally, amid continued declines, long positions opened to the tune of $1.20 million in value, which could negatively impact SHIB’s price. On the other hand, shorts created only $91,760 worth of liquidation, which is not enough to offset the effects of a long liquidation.