Shiba Inu Burn Rate Jumps 12842%, Will SHIB Price Recover From Crash?

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As an analyst with a background in economics and experience in the cryptocurrency market, I believe that the recent surge in Shiba Inu’s (SHIB) token burn rate could indeed be a positive development for the meme coin. The burning process reduces the overall supply of SHIB tokens, which can potentially lead to an increase in demand and subsequently, a rise in its value.

As a crypto investor, I’ve noticed that Shiba Inu (SHIB) has experienced a steep price drop of more than 10% recently. However, this meme coin has been generating buzz due to an impressive surge in its token burn rate. Based on data from Shibburn, a platform monitoring SHIB token elimination, the burn rate soared by an astounding 12,800% on June 18, Tuesday.

Shiba Inu Burn Rate Shoots Over 12800%

In spite of the significant surge in the number of Shiba Inu tokens being burned, the price of SHIB has been declining. Consequently, there is growing optimism that a price reversal may occur. Furthermore, this accelerated rate of Shiba Inu token destruction has piqued the curiosity of traders and investors alike.

The burning process decreases the total quantity of SHIB tokens existing in circulation, which could theoretically raise the token’s worth. In the past 24 hours, Shibburn reported a remarkable surge of 12,842.37% in the rate at which SHIB tokens were being burned, based on data from Shibburn.

Within the given time period, a total of 12.04 million SHIB tokens were collectively torched via numerous transactions from the community. Among these transactions, a noteworthy wallet with the address 0x608… made the most significant contribution by burning the largest quantity.

Ten million and fifteen hundred thousand SHIB tokens worth of value were sent to an address that incinerated them through two distinct transactions. These actions meaningfully increased the current burn rate. Additionally, various members of the Shiba Inu community have initiated their own token burning projects.

Because of these significant transactions, the quantity of SHIB tokens that have been destroyed has now surpassed 410.72 trillion. The decreasing supply of SHIB tokens might play a pivotal role in boosting the token’s value, especially if demand stays steady or increases. Consequently, the worth of SHIB could potentially climb even higher.

When economic theory is applied to the realm of cryptocurrencies such as SHIB, it suggests that a reduction in supply coupled with constant or expanding demand often results in an increase in price. The current trend of token burning among the Shiba Inu community has sparked excitement and anticipation within the fanbase, as they believe this could potentially boost the token’s worth.

SHIB Price To Recover?

Despite appearing simple, a Shiba Inu price rebound isn’t guaranteed. The cryptocurrency has relinquished vital support thresholds, potentially leading to a more significant decline. Recently, the meme coin’s value dipped below $0.000019, and it hovers near dropping beneath $0.000018. If Shiba Inu fails to stage a swift comeback, escalating sell-offs may result in further price decreases.

Based on Coinglass data, I’ve observed a staggering long liquidation of approximately 22.81 million SHIB tokens in the last 24 hours. This figure far surpasses the daily average liquidation volume, which typically hovers around the $1 million mark. Consequently, the downward trend in Shiba Inu’s price could intensify as investors continue offloading their holdings.

The feeling among the public regarding Shiba Inu has turned negative based on Santiment analysis. Previously, during the surge in March, investors were driven by FOMO and rushed to invest in altcoins. However, as the market trend changed, these investors have been selling off their holdings, leading to a mass exit from coins like SHIB and Dogecoin.

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2024-06-18 12:00