Shiba Inu Coin Burn Rate Soars 570% Amid Rally, Where’s SHIB Price Heading?

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As a seasoned crypto investor, I’ve seen my fair share of market volatility and meme coin hype. However, the recent surge in Shiba Inu (SHIB) token burn rate has piqued my interest once again. With a background in financial analysis, I understand the potential implications this reduction in supply could have on the asset’s price.

The meme cryptocurrency Shiba Inu (SHIB) has reclaimed the spotlight in the crypto world due to recent noteworthy advancements. As reported by Shibburn, a platform that monitors SHIB token burns, there was an astonishing increase of approximately 570% in burning activity on May 22. This significant surge in burning rates has fueled renewed enthusiasm and hope among traders and investors within the market.

Shiba Inu Coin Burn Rate Spikes Drastically

The substantial surge in Shiba Inu’s burn rate has led to a decrease in its circulating supply, potentially benefiting its token economics in the future. Over the past day, the burn rate experienced an unprecedented 569.50% increase, as reported by Shibburn. Consequently, approximately 12.70 million SHIB tokens were eliminated from circulation through various transactions initiated by the community. Among these transactions, four notable wallet addresses significantly contributed to this surge in burning activity.

Approximately 4.6 million SHIB were moved from the wallet address 0xa9d1… to a dormant wallet through two significant transactions that took place just a few hours ago. Simultaneously, an additional 1.01 million SHIB were transferred from the wallet address 0x608… to another inactive wallet during the same timeframe. These sizeable transactions have significantly contributed to the recent escalation of Shiba Inu’s burn rate.

An additional transaction involving a community wallet with the address 0xc66… occurred, transferring 1.04 million Shiba Inu tokens to a “dead” wallet. This action significantly increased the burn rate and now, approximately 410.72 trillion SHIB tokens have been burned in total. The decrease in token supply due to these burn transactions is perceived as a significant factor that could boost the value of SHIB.

A scarcity of supply coupled with constant or escalating market interest can drive up the value of any asset, including cryptocurrencies like Shiba Inu. This trend has fueled a wave of enthusiasm within the Shiba Inu community, as traders and investors keep a close eye on its performance.

Will SHIB Surge To $0.0001?

The price of Shiba Inu has overcome the significant barrier at $0.000025 and is currently trading at $0.00002562, representing a 1.39% increase as of writing on Wednesday. With a market capitalization of $15.11 billion, Shiba Inu remains the second-largest meme cryptocurrency.

Additionally, SHIB‘s trading volume reached a 24-hour high of $1.17 billion, marking a 33.58% increase. Previously, Coingape noted that SHIB could potentially rise to $0.00003 or even $0.00005 if it maintains its position above the stated resistance level. Furthermore, a potential long-term target for SHIB lies at $0.0001 if bullish trends continue uninterrupted.

The cost of Shiba Inu tokens has experienced a notable increase due to the upbeat market atmosphere. As a result, the value of open interest for Shiba Inu futures on Coinglass rose by 9.24% to reach $90.77 million. Nevertheless, long positions were responsible for most of the liquidations, totaling $471,170, which could potentially cause a decrease in the Shiba Inu price. Meanwhile, shorts accounted for roughly half of these liquidations, diminishing their influence.

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2024-05-22 08:41