Shiba Inu Burn Rate Increases to 16600%, What’s Next for SHIB Price?
The shiba inu (SHIB) meme coin, known for its dog mascot, has recently attracted a lot of attention in the crypto market due to the huge increase in its token burn rate. According to Shibburn, a platform that tracks the burning of SHIB tokens, the burn rate saw a notable increase of approximately 16,600% on Tuesday, June 4. However, this increase comes amid a decline in the SHIB price, offering hope of a potential recovery.
Shiba Inu Community Launches $21.5 Million SHIB Burn
The increase in SHIB token burning has created excitement among traders and investors. This reduces the overall supply of SHIB in circulation and potentially increases its value. Over the past 24 hours, the burn rate of SHIB tokens has increased by 16,593.83%, Shibburn reported.
During this period, the community collectively burned a total of 21.5 million SHIB tokens across multiple transactions. Moreover, a wallet address attracted attention as it emerged as the largest contributing factor to the increase in Shiba Inu burn rate.
The participant, who stands out with his wallet address 0x498…, transferred a total of 21.31 million SHIB tokens to a dead wallet in a single transaction. In addition, other Shiba Inu community members also performed various coin burns, increasing the burn rate.
The cumulative amount of SHIB tokens burned as a result of these large transactions reached an impressive 410.72 trillion. A decrease in supply is an important factor that could potentially increase the value of the SHIB token. Additionally, more benefits can be achieved if demand remains constant or increases.
In context, in economics, a decrease in supply combined with constant or increasing demand often leads to an appreciation of prices. This principle applies to cryptocurrencies, including SHIB. Recent developments have created a wave of optimism within the Shiba Inu community.
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SHIB Price Drops
The Shiba Inu fell below the critical support at $0.000024 today, moving away from the key resistance level at $0.000025. As of this writing, SHIB price lost 3.30% to $0.00002392 on Tuesday, June 4. The market value of the Meme cryptocurrency was $14.09 billion.
However, SHIB transaction volume increased by 42.35% to 659.67 million dollars in the last 24 hours. Although the burn rate has increased optimism in the market, a recovery in Shiba Inu price can only be recorded if the meme coin manages to successfully break through the $0.000025 level.
If SHIB price surpasses this level, it could possibly reach $0.000030 or even $0.000050. Additionally, if the bullish momentum continues, Shiba Inu could reach its long-term target of $0.0001, which some critics find impossible to achieve. However, derivative data painted a different picture.
Open interest on SHIB futures fell 13.95% to $89.77 million, according to Coinglass, indicating waning interest among derivatives traders. Additionally, Shiba Inu long liquidations rose to almost $1 million with no significant short liquidations; This indicates a further decline due to sales.
Also Read: FLOKI And DOG Lead Meme Coin’s Best Rising
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