The popular memecoin Shiba Inu (SHIB), known for its iconic dog mascot, has recently faced significant interest in the cryptocurrency market. This surge in interest is largely attributed to the dramatic increase in the token burn rate. According to Shibburn, a platform that tracks the burning of SHIB tokens, Shiba Inu’s token burn rate has seen an extraordinary increase of approximately 16,600% today. Despite this remarkable increase, SHIB’s price is declining, but the impressive rise in the burn rate has led to speculation about a potential price recovery.
Token Burn Rate Increase Excites Altcoin Investors
The Shiba Inu community has taken a proactive stance by initiating a significant SHIB token burn worth $21.5 million. This substantial burn, which reduces the circulating supply of SHIB tokens, has excited traders and investors as it could potentially increase their value. Shibburn reported a staggering 16,593% increase in the token burn rate within the past 24 hours, with the community collectively burning 21.5 million SHIB through multiple transactions.
Token burn rate received a notable contribution from a wallet address starting with 0x498…, which transferred 21.31 million SHIB tokens to a dead wallet in a single transaction. Along with other transactions from community members, the token burn rate reached new heights. As a result, the total number of burned SHIB tokens reached an impressive 410.72 trillion, a significant factor that could potentially raise the altcoin’s price if demand remains steady or increases.
From an economic perspective, a decrease in supply coupled with steady or increasing demand typically leads to a price increase, and this principle applies to altcoins like SHIB. The increase in the token burn rate has fueled optimism within the Shiba Inu community.
Price Shows a Negative Trend
Despite the significant token burn, SHIB’s price fell below the critical support level of $0.000024, distancing itself from the key resistance level at $0.000025. At the time of writing, SHIB’s price dropped by 3.30% in the last 24 hours to $0.00002392, with a market cap of $14.09 billion. Interestingly, SHIB’s trading volume increased by 42.35% in the last 24 hours, reaching $659.67 million.
While the rising token burn rate has injected optimism into the market, a significant price recovery for SHIB depends on surpassing the $0.000025 level. If the popular altcoin manages to break this level, it could potentially reach $0.000030 or even $0.000050. Additionally, if the bullish momentum continues, Shiba Inu could achieve the much-anticipated $0.0001 target.
However, derivative data presents a different narrative. According to Coinglass, open interest in Shiba Inu futures decreased by 13.95% to $89.77 million. This indicates a decline in interest from derivative traders in the altcoin. Additionally, while long liquidations increased by approximately $1 million, there were no significant short liquidations, suggesting further declines due to ongoing sales.
