Regulation
Shiba Inu Burn Rate Increases Over 68,000%, What Does This Mean for SHIB Price?
Shiba Inu, one of the top memecoins on the market, made headlines today after its burn rate increased by over 68,000% in the last 24 hours. This development has sparked optimism for the future value of the currency and investors are hoping for a potential price increase. However, this may not be the case as new data from CoinMarketCap shows that the value of the token dropped significantly during the burn rate increase.
In a recent development that has turned heads in the cryptocurrency market, the Shiba Inu community popularly known as the “SHIB Army”, has managed to destroy a significant portion of the SHIBs in circulation, up to a total of 7,611,370 (7, 6 million) on the last day, raising its accordingly burning rate exactly 68,316.81% according to recent data from Shibburn, a tracker dedicated to Shiba Inu burns.
According to the data provided, the total amount of SHIB was sent to the burned addresses through seven different transactions. In particular, one transaction was moved 4,320,587 (4.3 million) SHIB tokens at a burn address representing over 50% of the entire token burned in recorded time.
Source: Shibburn
Other notable transactions include one that destroyed 1,031 million SHIBs about 8 hours ago as of this writing and another that moved 1.53 million about 3 hours ago. The Shiba Inu community has continued to relentlessly reduce the total number of SHIBs in circulation through the burning mechanism with the hopes of creating scarcity and potentially increasing the price of the token.
As of this writing, approximately 410.7 trillion SHIB tokens have been destroyed, leaving over 583 trillion tokens in circulation. While the circulating supply is still large, the community is committed to this initiative as tens of millions of coins are removed from circulation each month.
Price Shiba Inu in the middle of a burnt hike
While the purpose of this burn mechanism is to help the price of SHIB, the current state of the coin tells a different story. Second data from CoinMarketCapSHIB is currently down 2.29% over the past 24 hours $0.00002307.
However, market activities surrounding the token, as observed in its trading volume, increased by 6.95% to $505 million. Additionally, Shiba Inu (SHIB) has fluctuated between lows and highs of $0.00002279 and $0.00002359 over the past 24 hours, signaling a decline of 73.3% from its all-time high of $0.00008616 reached in the past 24 hours. October 2021.
It is hoped that the value of the Shiba Inu will subsequently bend to the laws of supply and demand. As more coins are burned, those remaining in circulation become more attractive and valuable, hence a potential rise to coveted levels.