Cryptocurrency Shiba Inu (SHIB) saw a significant increase in the token burn rate, rising by 2814% in the last 24 hours. This dramatic increase occurred despite the continued decline in SHIB’s market price. The rise in the burn rate is linked to comments by SHIB’s marketing leader Lucie regarding the potential of a SHIB Exchange Traded Fund (ETF). Despite the increased burn rate and optimistic ETF discussions, SHIB’s price showed no signs of recovery.
Increase in SHIB Burns
According to Shibburn, a platform that monitors the burning of SHIB tokens, the burn rate rapidly increased on June 11, leading to the destruction of approximately 7.9 million SHIB tokens in various transactions. The purpose of token burning is to reduce the total circulating supply, theoretically increasing the value of the remaining tokens. However, the SHIB price continued its downward trend, reflecting significant sales in the market.
Shiba Inu community played an active role in the token burning process. Notably, two wallet addresses stood out in burning large amounts of SHIB. The first address, starting with 0x608, burned approximately 5.35 million SHIB tokens through two transactions.
The second address, starting with 0xc66, destroyed 1.53 million SHIB tokens. Numerous smaller transactions carried out by other community members also contributed to the increased burn rate, bringing the total number of burned tokens to a massive 410.72 trillion.
Statements on SHIB ETF
Lucie’s statements regarding a potential SHIB ETF sparked interest among SHIB supporters, especially following the approval of Spot Ethereum ETFs. However, Lucie expressed uncertainty about whether institutional investors would understand SHIB’s value. She hoped that large financial institutions like BlackRock would eventually see the potential in Shiba Inu, but how these institutions will react remains uncertain.
Currently, SHIB has not surpassed the critical resistance level of $0.000025. It was stated that surpassing this level could lead to an increase in SHIB’s value, potentially reaching $0.00003 and even $0.00005 in the short term.
Reaching and maintaining these levels could lay the groundwork for a more ambitious target of $0.0001. However, SHIB‘s price is far from its all-time high of $0.00008845, and the prevailing downward trend poses a significant challenge.
