In the 24 hours leading up to November 19, Shiba Inu (SHIB) experienced a 6070% increase in the burn rate as over 4 million tokens were burned. This caused the meme coin's price to rise to $0.00003, marking a growth of 5%.
When examining Shibburn's data, it was discovered that 4.8 million SHIB tokens have been permanently removed from circulation as the burn rate surged to 6070%. Such burn transactions are conducted to control the token supply as it reduces the total circulating supply of the digital asset, in this case, the Shiba Inu coin. This increases scarcity, paving the way for token price increases.
The burn event on November 19 is one of the largest burns of the Shiba Inu meme coin in recent times. This event occurred through a wallet address starting with 0x60812 that transferred 2 million SHIB tokens to another wallet where they were burned. Another burn event occurred later when wallet address 0xf89d7 removed 1.55 million Shiba Inu tokens.
The remaining tokens burned came from smaller events including 500,000 tokens burned from wallet address 0x79669 and 125,000 SHIB burned from wallet address 0xa9d1e.
These explosive events occurred at a time when the meme coin is in a bullish phase, showing double-digit price increases in the previous week. The SHIB token has demonstrated remarkable resilience by surging in volatile market conditions. It has surpassed significant resistance levels to rise to $0.00003.
Analysts predict that breaking through this barrier means growing investor interest in Shiba Inu and the meme coin's position is being strengthened in the cryptocurrency market.
The Shiba Inu project has always emphasized improving the utility of the Layer 2 blockchain Shibarium. With these explosive events, SHIB has fully aligned with its deflationary goals as well as reducing token supply. These moves encourage cryptocurrency investors to hold long-term positions.
The token burn on November 19 caused Shiba Inu to surge by 5.93% on Tuesday, ending trading at $0.00002591 with trading volume increasing by 1.79% to $1.31 billion. As the meme coin surpassed the resistance threshold of $0.000025 due to the recent surge in burn activity, analysts believe SHIB will rise to $0.00003.
However, analysts also warn that traders should be cautious of market conditions and not solely rely on price surges related to burn activity to understand demand for the token. Overall, the significant increase in Shiba Inu's burn rate maintains the project's commitment to increasing value, which could lead to price spikes in the future.
As of November 21, the price of Shiba Inu has decreased by 8.17% and is trading at $0.00002353 while the trading volume has increased by 1.71% in the past 24 hours, reaching $1.34 billion, and the market capitalization has dropped to $13.88 billion.
