Shiba Inu Burn Rate Jumps 12842%, Will SHIB Price Recover From Crash?
The Shiba Inu (SHIB) meme coin has been grappling with a massive price crash lately, plunging over 10%. However, the doge-themed crypto has recently garnered significant attention due to a substantial increase in its token burn rate. According to Shibburn, a platform dedicated to tracking SHIB token destruction, the burn rate skyrocketed by approximately 16,600% on Tuesday, June 4.
Shiba Inu Burn Rate Shoots Over 12800%
Despite the dramatic rise in Shiba Inu burn rate, the SHIB price has been on a downward trend. Hence, this has led to hopes of a potential price rebound. Moreover, this sharp increase in SHIB token burning has sparked interest among traders and investors.
The burning process reduces the overall number of SHIB tokens in circulation, which can potentially boost the token’s value. In the last 24 hours, Shibburn reported a staggering 12,842.37% increase in the burn rate of SHIB tokens, according to data from Shibburn.
In this timeframe, the SHIB community collectively burned 12.04 million tokens through various transactions. A particular wallet, identified by the address 0x608…, stood out, making the highest contribution.
The address burned a massive 10.15 million SHIB tokens via two transactions, significantly contributing to the surge in the burn rate. Moreover, other community members have also undertaken several Shiba Inu token burn initiatives.
Due to these substantial transactions, the total number of burned SHIB tokens has reached an impressive 410.72 trillion. This reduction in supply could be a crucial factor in driving up the value of the SHIB token. If demand remains constant or increases, the value could potentially rise even further.
In economic terms, a decrease in supply with stable or growing demand typically leads to price increases. This principle also applies to cryptocurrencies like SHIB. The recent surge in token burning has generated a wave of optimism among the Shiba Inu community, hoping for a positive impact on the token’s value.
SHIB Price To Recover?
However, a recovery isn’t as easy as it may seem. The Shiba Inu price lost hold on crucial support levels, which could lead to a further downturn. The meme coin’s price slumped below $0.000019 lately, and now is close to dropping below $0.000018. If the SHIB price fails to make a quick recovery, further losses can be expected owing to the increased sell pressure.
According to Coinglass data, a whopping 22.81 million long liquidation has been noted for SHIB in the past 24 hours. This future is unprecedentedly higher than the daily average liquidation, which is lower than $1 million. Hence, the Shiba Inu price crash could worsen as investors continue dump.
Furthermore, the crowd sentiment toward Shiba Inu has dropped, according to Santiment data. Earlier, during the rally in March this year, Investors experienced FOMO (Fear of Missing Out) and aggressively entered the market to capitalize on altcoins. However, as the trend shifted, they have been exiting the market, affecting large cap altcoins like SHIB and Dogecoin.
Also Read: Shiba Inu (SHIB) Exec Touts Important Industry Collaboration, Will This Reboot Price
The post Shiba Inu Burn Rate Jumps 12842%, Will SHIB Price Recover From Crash? appeared first on CoinGape.
