In the midst of the recent correction in the cryptocurrency market, investor interest in the Ethereum-based memecoin Shiba Inu (SHIB) has increased. The surge in interest occurred as the altcoin’s token burn rate soared by nearly 4000% in the last 24 hours. Data provided by the altcoin’s token burn tracker has heightened optimism for potential price increases in SHIB.
Token Burn Rate Increases by 4093%
According to data from the token burn tracking platform Shibburn, the SHIB burn rate has increased by 4093% in the last 24 hours. This surge resulted in 154.99 million SHIB being burned and removed from circulation. Additionally, the Shiba Inu community has witnessed a staggering 312.03 million SHIB burned in the last 7 days, further boosting the optimistic sentiment surrounding the token.
Despite SHIB’s recent negative price trend, the consistent increase in the token burn rate, especially the surge over 4000% in the last 24 hours, has led to optimism for the altcoin. As is known, an increase in the token burn rate reduces SHIB’s circulating supply, which can help mitigate the downward trend in the altcoin’s price and positively affect its tokenomics.
Current State of SHIB
With the boost in optimism fueled by the increase in the token burn rate, Shiba Inu’s SHIB price has seen a 1.14% rise in the last 24 hours, trading at $0.00002709.
However, data from the crypto analytics platform Coinglass shows that SHIB’s open interest in derivatives has fallen by 1.55% and its trading volume has decreased by 11.96%. These two derivative data points indicate a decline in investor interest and participation in the altcoin.
Despite mixed signals, the decrease in supply combined with potential buying pressure is expected to significantly influence SHIB’s price movement. A technical analysis of Shiba Inu suggests that if the selling pressure continues, the price could retest the 61.8% Fibonacci retracement level at $0.00002368.
