- Shiba Inu’s burn rate surged by 16,600% as a community wallet burned over 21 million SHIB tokens amidst a price decline, potentially reducing supply and sparking optimism for a price rebound.
- Despite this, SHIB’s price dropped below key support levels, trading at $0.00002392, while increased trading volume and declining derivatives interest indicate uncertainty about its future trajectory.
The Shiba Inu (SHIB) cryptocurrency has seen a dramatic increase in its burn rate, sparking hopes of a rebound in its price amidst recent declines. As of Tuesday, June 4, the burn rate surged by an astonishing 16,600%, with a community wallet contributing significantly to the incineration of over 21 million SHIB tokens.
The sudden spike in burn rate, as reported by Shibburn, a platform tracking SHIB token burns, has ignited optimism among traders and investors. This surge has resulted in a total of 21.5 million SHIB tokens being burned in just 24 hours, marking a significant reduction in the overall supply of SHIB tokens in circulation. Notably, one wallet address, 0x498…, stood out by transferring a massive 21.31 million SHIB tokens to a dead wallet in a single transaction, contributing the most to the rapid increase in burn rate.
The cumulative amount of SHIB tokens burned now totals an impressive 410.72 trillion, highlighting the potential scarcity that could drive up the value of the meme coin. Economic principles dictate that a reduction in supply, coupled with constant or rising demand, typically leads to price appreciation. This development has sparked optimism within the Shiba Inu community, despite the recent decline in SHIB’s price.
Speaking of the price, Shiba Inu has recently fallen below the critical support level of $0.000024, distancing itself from the key resistance level of $0.000025. As of now, SHIB is priced at $0.00002392, having lost 3.30% on Tuesday, June 4, with a market capitalization of $14.09 billion. Despite the price drop, trading volume has surged by 42.35% to $659.67 million, indicating increased activity in the market.
The burn rate surge has added optimism to the market, with many hoping for a price rebound if SHIB can break out above the $0.000025 level. Should this happen, analysts predict potential targets of $0.000030 or even $0.000050, with some optimists eyeing the $0.0001 mark. However, derivatives data tells a different story, with SHIB futures open interest declining by 13.95% to $89.77 million, suggesting waning interest among derivatives traders. Furthermore, long liquidations have increased to nearly $1 million, indicating potential further declines due to ongoing sell-offs.
While the surge in burn rate has provided a glimmer of hope for SHIB holders, the path forward remains uncertain. The market sentiment is mixed, with optimistic price targets on one hand and declining derivatives interest on the other. Investors and traders will be watching closely to see if the reduction in supply can outweigh the current bearish sentiment and drive Shiba Inu towards a price recovery.
The Road Ahead for SHIB
As SHIB navigates through these turbulent times, the community’s focus on burn rates and price dynamics will be critical in determining its future trajectory in the cryptocurrency market.
