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Popular memecoin Shiba Inu (SHIB) has once again caught the attention of the cryptocurrency world with a significant increase in its token burn rate. According to Shibburn, which tracks token burns in Shiba Inu, the altcoin’s token burn rate increased by approximately 570% on May 22. This increase indicates a significant reduction in SHIB supply, potentially leading to positive effects on its price and creating optimism among investors.
Token Burn Rate Increased by 569.0%
According to recent data, Shiba Inu’s token burn rate increased by 569.50% in the last 24 hours, with a total of 12.70 million SHIB burned and removed from circulation through various transactions.
Four specific wallet addresses were instrumental in this increase in the token burn rate. One notable address, 0xa9d1…, moved 4.6 million SHIB to a dead wallet in two large transactions, while another address, 0x608…, transferred 1.01 million SHIB to a dead wallet. Additionally, the community wallet 0xc66… contributed to the token burns by moving 1.04 million SHIB to a dead wallet. These significant transactions led to an increase in the SHIB burn rate.
Due to these token burn transactions, the reduction in Shiba Inu’s supply is seen as a potential catalyst to increase SHIB’s value. From an economic perspective, a lower supply typically leads to price appreciation when demand is stable or increasing. This situation has led to increased optimism within the Shiba Inu community, with many investors closely following the altcoin’s development.
What’s Next for SHIB?
Currently, SHIB has successfully broken the resistance level at $0.000025. The altcoin is trading at $0.00002599 with a 1.39% increase in the last 24 hours and has a market cap of $15.11 billion. SHIB’s 24-hour trading volume also increased by 33.58%, reaching $1.17 billion.
Analysts suggest that if SHIB continues to trade above this critical resistance level, it could rise to $0.00003 or even $0.00005. In the long term, if the upward momentum continues, a rally to $0.0001 is possible.
The overall positive market sentiment has significantly boosted the price of Shiba Inu’s SHIB. According to Coinglass, open interest in SHIB futures also increased by 9.24%, reaching $90.77 million. However, there was a $471,170 long liquidation that could pull SHIB’s price down, but shorts accounted for nearly half of these liquidations, making the impact of long liquidations less significant.
