Over the last day, a substantial amount of Shiba Inu (SHIB) tokens, up to the tune of 7 million coins, were removed from circulation by the vibrant community. Consequently, its burn rate skyrocketed by over 2,600%. This has raised reactions among market participants who are eager to see the effect it will have on the value of the coin.
Since the past week, SHIB has joined the global market in a downtrend. The price has failed to gain momentum despite the sizeable amount of tokens that have been burned over the last month. However, with the recent burn and the positive sentiment surrounding the market, will the price of Shiba Inu go up?
Shiba Inu Burn Rate Surge
According to a recent report by Shibburn, a dedicated SHIB burn tracker, the Shiba Inu community succeded in destroying exactly 6,913,625 SHIB tokens in the last 24 hours. As a result, the burn rate jumped by 2,611%. Notably, the SHIB burn was carried out in two separate transactions.
In the past 24 hours, there have been a total of 6,913,625 $SHIB tokens burned and 2 transactions. Visit https://t.co/t0eRMnyZel to view the overall total of #SHIB tokens burned, circulating supply, and more. pic.twitter.com/atshvqgTKK
— Shibburn (@shibburn) August 2, 2024
The first one, by an address labeled ‘0x60…fe80,’ carried 2,010,201 SHIB tokens to a burn address. Shortly after, the same address removed another 4,903,424 SHIB from circulation. Even though the total value of the burned tokens was a meager $106, it still managed to catch the attention of the community popularly known as the “Shib Army.”
According to a previous report by Shibburn, a total of 379,473,801 SHIBs were destroyed in July with an average monthly burn rate of 58.57%. Moreover, Shiba Inu’s circulating supply is now approximately 583 trillion SHIB after burning more than 410 trillion tokens.
Will the Shiba Inu Price Rise?
Shiba Inu burn happens when a portion of SHIB tokens are intentionally removed from circulation. This irreversible action is done by sending SHIB to unspendable wallet addresses. This technique is employed to drastically reduce the amount of SHIB in circulation, thus, creating scarcity which can potentially impact the price of the coin as demand increases.
However, it is important to know that the burning mechanism is not the only factor that can affect the price of Shiba Inu. Other factors like general market conditions, macroeconomic situations, big news and trends, community updates, and the Shibarium adoption can significantly impact the price trajectory of the coin.
At the time of writing, the recent burn has had no significant impact on SHIB’s price. In fact, its value has plummeted by 3,04% in the last 24 hours to trade at $0.00001531. However, its one-day trading volume surged by 10.53% to $254.4 million, signifying increased selling activities.
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