Shiba Inu Burn Rate Has Skyrocketed By An Incredible 300%
Shiba Inu (SHIB), the popular meme coin, has recently garnered attention in the crypto community due to its significant increase in burn rate. According to Shibburn, a platform monitoring SHIB token burns, the burn rate of Shiba Inu saw a sharp increase of over 310% on Friday, May 31. This rise has led to excitement among traders and investors in the market.
Shiba Inu Burn Rate Soars 300%
The surge in SHIB’s burn rate has effectively reduced its market supply, potentially benefiting its tokenomics in the long term. In the last 24 hours alone, the burn rate soars by 310.99%, with a total of 9.74 million SHIB tokens destroyed in several transactions. Three specific wallet addresses played a significant role in the increase in the burn rate, with one wallet address transferring 4.91 million SHIB to a dead wallet through two substantial transactions conducted hours apart.
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In addition, another wallet address sent 1.5 million SHIB tokens to a dead wallet, while another community wallet sent 1.04 million SHIB tokens to a dead wallet in the last 24 hours, further boosting the burn rate. As a result, the total amount of SHIB tokens burned has reached an impressive 410.72 trillion.
Economically, the decrease in supply with consistent or increasing demand typically leads to price appreciation, a principle that applies to cryptocurrencies as well. This development has brought optimism to the Shiba Inu community, with many traders and investors closely observing the progress of the meme coin.
Will SHIB Price Bounced Back?
In terms of price, Shiba Inu had previously surpassed the important resistance level of $0.000025, maintaining levels above that despite the recent drop by 7.41% to $0.00002572 on Friday. The second-largest meme cryptocurrency had a market capitalization of $15.14 billion, with a 24-hour trading volume of $1.01 billion, reflecting a 40.90% decline.
If SHIB continues to trade above the key resistance level, its price could potentially soar to $0.00003 or even $0.00005. Additionally, the decreasing supply due to the surge in Shiba Inu burn rate could support a recovery. In the long term, SHIB could target a rally to $0.0001 if the bullish momentum continues. However, succumbing to the current bearish trend, the next crucial support would be at $0.000024. Meanwhile, SHIB futures open interest dropped by 9.99% to $106.59 million, with long positions facing substantial liquidations.
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Michael Onche: Crypto aficionado and seasoned analyst. With a keen eye for market trends and a passion for blockchain technology, he deciphers the intricacies of cryptocurrency with precision. Michael’s expertise and insightful content make him a trusted guide for navigating the dynamic world of digital assets.
