Due to a sharp rise in token burn rate, the Shiba Inu (SHIB) meme coin—named after its canine mascot—has recently attracted much attention in the cryptocurrency market. Shibburn, a platform that monitors the burning of SHIB tokens, reports that on Tuesday, June 4, there was an astounding increase in the burn rate of around 16,600%. But this increase coincides with a drop in the price of SHIB, raising the possibility of a future rise.
Community of Shiba Inus Starts $21.5M SHIB Burn
The increase in SHIB token burning has excited traders and investors. It lowers the total amount of SHIB in circulation, which could increase its value. Shib burn said the SHIB token burn rate increased by 16593.83% over the previous day.
The community burned a total of 21.5 million SHIB tokens during this time through various transactions. Furthermore, one wallet address was revealed as the primary cause of the increase in the Shiba Inu burn rate.
The noteworthy donor that used wallet address 0x498 In one transaction, 21.31 million SHIB tokens were moved to a dead wallet. Token burning was also carried out by other members of the Shiba Inu community, which increased the burn rate.
The total number of SHIB tokens burned due to these significant transactions is an astounding 410.72 trillion. Reducing supply is one important element that might raise the SHIB token’s value. Additionally, there may be greater benefits if demand stays the same or rises.
In economics, for example, a decrease in supply combined with a steady or increasing demand usually results in price appreciation. SHIB is one of the cryptocurrencies that falls under this rule. The Shiba Inu community has experienced a surge of hope due to the latest events.
SHIB Price Drops
Shiba Inu pulled away from the critical resistance level of $0.000025 today, plunging below the crucial support of $0.000024. As of this writing, on Tuesday, June 4, the SHIB price dropped 3.30% to $0.00002392. At the same time, the meme cryptocurrency’s market value was $14.09 billion.
But on the last day, the SHIB trade volume increased 42.35% to $659.67 million. Even though the burn rate has raised investor confidence, the price of Shiba Inu will rise once the meme currency breaks above the $0.000025 threshold.
The price of SHIB might rise above this barrier and hit $0.000030 or even $0.000050. Furthermore, Shiba Inu may reach the long-eyed $0.0001 target, which some detractors believe is unachievable, provided the bullish momentum continues. The derivatives data, however, showed a different story.
As reported by Coinglass, the SHIB futures open interest dropped 13.95% to $89.77 million, showing a dip in interest among derivatives traders. Additionally, there were no significant short liquidations despite Shiba Inu’s long liquidations rising to about $1 million, suggesting further falls due to the sell-off.
