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Highlights
- Shiba Inu burn rate rocketed over 16,500% today amid the SHIB price declines.
- A community wallet address caught the attention by conducting the highest burn in the last 24 hours.
- While the spike in burn rate could catalyze a recovery, several other obstacles stand in SHIB's way.
The Shiba Inu (SHIB) meme coin, known for its canine mascot, has recently grabbed massive attention in the crypto market due to a gigantic increase in its token burn rate. According to Shibburn, a platform that tracks the incineration of SHIB tokens, the burn rate saw a remarkable surge of nearly 16,600% on Tuesday, June 4. However, this surge comes amid a decline in SHIB price, offering hopes of a potential rebound.
Shiba Inu Community Initiates $21.5M SHIB Burn
The surge in SHIB token burning has sparked enthusiasm among traders and investors. It reduces the overall supply of SHIB in circulation, potentially enhancing its value. In the past 24 hours, the burn rate of SHIB tokens escalated by 16593.83%, as reported by Shibburn.
During this period, the community collectively burned a total of 21.5 million SHIB tokens across multiple transactions. Moreover, one wallet address grabbed the spotlight as they emerged as the biggest contributor to the spike in Shiba Inu burn rate.
The notable contributor with the wallet address 0x498… transferred a total of a whopping 21.31 million SHIB tokens to a dead wallet in one single transaction. In addition, other Shiba Inu community members conducted several token burns, driving the burn rate higher.
As a result of these large transactions, the cumulative amount of SHIB tokens burned has reached an impressive total of 410.72 trillion. The reduction in supply is a key factor that could potentially drive up the value of the SHIB token. Furthermore, if the demand remains steady or increases, it could be of higher benefit.
For context, in economics, a reduction in supply with constant or rising demand typically leads to price appreciation. This principle applies to cryptocurrencies, including SHIB. The recent developments have generated a wave of optimism within the Shiba Inu community.
Also Read: 3 Ethereum Rivals To Buy If You Missed Solana
SHIB Price Tumbles
Shiba Inu slumped below the crucial support of $0.000024 today, distancing from the key resistance level of $0.000025. As of writing, the SHIB price lost 3.30% to $0.00002392 on Tuesday, June 4. Whilst, the meme crypto held a market capitalization of $14.09 billion.
However, the SHIB trading volume spiked 42.35% to $659.67 million in the past 24 hours. Though the burn rate has added optimism in the market, a rebound in Shiba Inu price can be noted only if the meme coin manages to successfully breakout from the $0.000025 level.
If the SHIB price surged past this level, it could possibly reach $0.000030 or even $0.000050. In addition, if the bullish momentum holds, Shiba Inu could attain the long-eyed $0.0001 target, which some critics find impossible to achieve. However, the derivatives data painted a different picture.
According to Coinglass, the SHIB futures open interest declined 13.95% to $89.77 million, indicating a diminishing interest among derivatives traders. Furthermore, Shiba Inu long liquidations soared to nearly $1 million with no substantial short liquidations, indicating further declines owing to the sell-off.
Also Read: FLOKI and DOG Leads Top Meme Coin Rebound
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