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In the cryptocurrency world, one of the most strategic methods used to manage supply and demand dynamics and increase token value is token burning, which is being carried out with great momentum by the Shiba Inu (SHIB) community. The surprising 3,894% increase in SHIB token burn rate has drawn attention to this cryptocurrency. This dramatic increase means millions of SHIB tokens are permanently removed from circulation.
Token Burning and Shiba Inu
Token burning is the process of intentionally destroying a certain amount of tokens. This is usually done by sending these tokens to an inaccessible wallet known as a “burn” address. Thus, the total supply decreases, and the value of the remaining tokens potentially increases.
In the last 24 hours, the Shiba Inu network witnessed a significant increase in this burn rate. According to data from the Shibburn X account, a total of 4,829,147 SHIB tokens were burned in seven transactions. This significant activity led to a 3,894% increase in the burn rate.
Coincided with Increased Interest from Whales
This increase in SHIB token burns coincided with a sudden rise in interest from large-scale investors, commonly known as whales. This week, the number of significant transactions involving SHIB doubled compared to the average figures at the beginning of 2024.
According to Santiment’s analysis, this increase in whale interest could be a significant factor behind the recent rise in SHIB burns. Santiment reported that the number of $100,000 transactions on the Shiba Inu network more than doubled, indicating significant accumulation activity.
Shiba Inu Price
On June 4, Shiba Inu’s value showed a significant recovery, reaching an intraday low of $0.00002284 before surpassing the daily Simple Moving Average (SMA) 50 at $0.00002471. The cryptocurrency continued its upward trend to reach highs of $0.00002625 in the following trading sessions before encountering resistance. At the time of writing, SHIB’s price had fallen by 1.5% in the last 24 hours to $0.00002562, but it had increased by 7% compared to the previous week.
Other data from IntoTheBlock showed a 223% increase in large transaction volumes for SHIB, with $435.66 million in significant transactions exceeding $100,000. This metric sheds light on the scale of activity by whales and institutional players in the SHIB ecosystem.
