SHIB Price Drops Despite 321% Increase in Token Burn Rate
The cryptocurrency market opened weakly on Wednesday morning, with Bitcoin and smaller cryptocurrencies trending lower. At the time of writing, Bitcoin was down 7.21% while Ethereum was down 7.71%.
The pessimism was also reflected in the price of the meme coin Shiba Inu, which fell by approximately 12.97% in the last 24 hours. The price drop came as a surprise to investors, as an increase in the token’s burn rate was seen earlier this week. The increase in burn rate comes amid increased interest in Shibarium, a layer 2 blockchain launched by shiba inu last year.
Interest in Shibarium Grows, but Things Are Not Well at SHIB
More than 12.46 million SHIB tokens were burned in the last 24 hours, seeing a 321% increase in the burn rate of the meme coin during this period. While tokens were locked up across multiple transactions, one transaction in particular stood out, moving more than 12.43 million SHIB tokens to burn addresses.
The total number of SHIB tokens burned to date has exceeded 410.69 trillion. CoinGape reports that in the last seven days alone, SHIB has experienced an exponential 500,000% increase in burn rate compared to last November, with 264.20 million tokens sent to addresses in just 24 hours.
Massive SHIB Token Burn Failed to Stimulate Price Rise
Since investors prefer rare crypto assets over cryptocurrency assets with unlimited supply, token burning is often carried out to reduce the token supply and increase its value. However, the latest attempt to burn SHIB has failed to increase the price of Shiba Inu.
As of writing, the SHIB price decreased by 12.96% in the last 24 hours, reaching $0.000009301. SHIB currently has a market cap of $5.48 billion, making it the 17th largest cryptocurrency. Meanwhile, transaction volumes increased by 98.46% in the last 24 hours to $299.28 million.
While SHIB has been dubbed the “dogecoin killer” due to its soaring value in 2021, the dog-themed cryptocurrency is still trading below its lifetime high of $0.00008845, recorded in October 2021.
The total number of addresses holding SHIB tokens increased by 0.015% in the last 24 hours to 1.36 million. Meanwhile, more than $98,000 in SHIB transactions was liquidated during this time.
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