Shiba Inu’s burn rate increased by nearly 16600% as one wallet began token burning over $21 million during SHIB recent price drop, which could potentially lead to a recovery due to reduced supply.
The Shiba Inu (SHIB) meme coin, known for its canine mascot, has recently gained significant attention in the crypto market due to the massive increase in its token burn rate.
According to Shiburn, a platform that tracks the burning of SHIB tokens, on Tuesday, June 4th, the burning rate saw an extraordinary increase of about 16,600%.
Shiba Inu Community Launches $21.5M SHIB Burn
The surge in SHIB token burning has sparked excitement among traders and investors. This reduces the overall supply of SHIB in circulation, potentially increasing its value. In the last 24 hours, the burning rate of SHIB tokens has increased by 16593.83%, as reported by Shibburn.
During this period, the community collectively burned a total of 21.5 million SHIB tokens in multiple transactions. Additionally, one wallet address gained attention as it emerged as the largest contributor to Shiba Inu’s increased burn rate.
A notable contributor with wallet address 0x498 transferred a total of 21.31 million SHIB tokens to DeadWallet in a single transaction. In addition, other members of the Shiba Inu community performed several token burns, increasing the burn rate.
As a result of these large transactions, the total amount of SHIB tokens burned has reached 410.72 trillion. A decrease in supply is a key factor that could potentially increase the value of the SHIB token. Additionally, if demand remains stable or increases, it could be more profitable.
For context, in economics, a decrease in supply with constant or increasing demand usually leads to an increase in prices. This rule applies to cryptocurrencies, including SHIB. Recent developments have created a wave of hope within the Shiba Inu community.
SHIB price dropped
Shiba Inu today fell below the key support at $0.000024, away from the key resistance level at $0.000025. SHIB traded down 3.30% to $0.00002392 as of Tuesday, June 4th. Whereas, meme crypto has a market capitalization of $14.09 billion.
However, SHIB trading volume rose 42.35% to $659.67 million in the last 24 hours. Although the burn rate has added optimism to the market, a recovery in Shiba Inu price can only be noted if MemeCoin manages to successfully breakout from the $0.000025 level.
If SHIB price rises above this level, it could possibly reach $0.000030 or $0.000050. Also, if the bullish momentum continues Shiba Inu can reach the long-eyed target of $0.0001, which some critics say is impossible to achieve. Derivative data, however, painted a different picture.
According to Coinglass, open interest in SHIB futures fell 13.95% to $89.77 million, indicating waning interest among derivatives traders. Additionally, Sheba Inno long liquidations increased to nearly $1 million without significant short liquidations, indicating further declines due to the selloff.