Altcoins
Shiba Inu Burn Rate Soars 12,842%, Will SHIB Price Recover From Crash?
THE Shiba Inu (SHIB) Meme Coin has been struggling with a massive price drop of late, plunging more than 10%. However, doge-themed crypto has recently attracted significant attention due to a substantial increase in its token burn rate. According to Shibburn, a platform dedicated to tracking the destruction of SHIB tokens, the burn rate increased by approximately 12,800% on Tuesday, June 18.
Shiba Inu burn rate exceeds 12,800%
Despite the dramatic increase in Shiba Inu burn rate, the price of SHIB has been on a downward trend. Therefore, this has raised hopes of a potential price rebound. Additionally, this sharp increase in SHIB token burning has attracted interest from traders and investors.
The burning process reduces the total number of SHIB tokens in circulation, which can potentially increase the value of the token. Over the past 24 hours, Shibburn reported a staggering 12,842.37% increase in SHIB token burn rate, according to data from Shibburn.
During this period, the SHIB community collectively burned 12.04 million tokens through various transactions. One particular wallet, identified by the address 0x608…, stood out and made the largest contribution.
The address burned 10.15 million SHIB tokens via two transactions, significantly contributing to the increased burn rate. Additionally, other community members have also undertaken several Shiba Inu token burning initiatives.
Due to these substantial transactions, the total number of SHIB tokens burned reached an impressive figure of 410.72 trillion. This reduction in supply could be a crucial factor in increasing the value of the SHIB token. If demand remains constant or increases, the value could potentially increase even further.
In economic terms, a decrease in supply accompanied by stable or increasing demand generally leads to an increase in prices. This principle also applies to cryptocurrencies like SHIB. The recent increase in token burning has generated a wave of optimism within the Shiba Inu community, hoping for a positive impact on the token’s value.
The SHIB price to recover?
However, recovery is not as easy as it seems. Shiba Inu price has lost crucial support levels, which could lead to a further downturn. The meme coin price has fallen below $0.000019 in recent times, and is now on the verge of falling below $0.000018. If the SHIB Price If the market does not recover quickly, further losses can be expected due to increased selling pressure.
According to Coinglass data, a huge liquidation of $22.81 million was seen for SHIB in the last 24 hours. This future is unprecedentedly higher than the average daily liquidation, which is less than $1 million. Therefore, the Shiba Inu price drop could get worse as investors continue to dump.
Additionally, according to Santiment data, crowd opinion of the Shiba Inu has plummeted. Earlier, during the March rally this year, investors experienced FOMO (Fear of Missing Out) and aggressively entered the market to capitalize on altcoins. However, as the trend changed, they left the market, affecting large-cap altcoins like SHIB and Dogecoin.
Read also: Shiba Inu (SHIB) Exec Touts Major Industry Collaboration, Will This Reboot Be Expensive