Shiba Inu Coin Burn Rate Soars 570% Amid Rally, Where’s SHIB Price Heading?

Shiba Inu (SHIB), the popular meme coin, has once again captured the crypto community’s attention with its latest developments. According to Shibburn, a tracker for Shiba Inu token burns, the burn rate for the meme coin surged nearly 570% on Wednesday, May 22. The surging burn rate sparked market optimism among traders and investors.

Shiba Inu Coin Burn Rate Spikes Drastically

The significant increase in the burn rate has reduced Shiba Inu’s market supply, which could have positive implications for its tokenomics moving forward. In the past 24 hours, the burn rate skyrocketed by 569.50%, according to Shibburn. Moreover, a total of 12.70 million SHIB tokens were incinerated in several transactions by the community. Notably, four specific wallet addresses played a major role in this spike.

The wallet address 0xa9d1… was responsible for shifting 4.6 million SHIB to a dead wallet via two gigantic transactions recorded a few hours ago. Furthermore, another wallet address, 0x608…, transferred 1.01 million SHIB to a dead wallet over the same period. These substantial transactions have been pivotal in driving the recent surge in Shiba Inu’s burn rate.

In addition, another community wallet moved, 0xc66…., moved 1.04 million Shiba Inu tokens to a dead wallet, successfully contributing to the burn rate spike. Hence the amount of total SHIB tokens burned stands at a massive 410.72 trillion. Moreover, the reduction in supply due to these burn transactions is seen as a potential catalyst for bolstering the value of SHIB.

For context, a lower supply with steady or increased demand could lead to price appreciation of any asset, including cryptocurrencies. This development has led to a spurge of optimism into the Shiba Inu community, with many traders and investors closely monitoring meme coin’s progress.

Also Read: 2 Key Factors Pushing The Shiba Inu Price To $0.001 In 2024

Will SHIB Surge To $0.0001?

The Shiba Inu price has successfully managed to breakout from the $0.000025, which served as a crucial resistance level. At the time of writing, the SHIB price was up by 1.39% to $0.00002562 on Wednesday. Meanwhile, the second-largest meme crypto boasted a market cap of $15.11 billion.

Moreover, the 24-hour trading volume for SHIB spiked 33.58% to $1.17 billion. As earlier reported by Coingape, the SHIB price is poised to surge to $0.00003 or even $0.00005 if it continues to trade above the critical resistance level mentioned. Furthermore, a rally to $0.0001 can be eyed in the long-term if the bullish momentum sustains.

The Shiba Inu price has surged significantly amid the overall positive sentiment in the market. Hence, the SHIB futures open interest also gained 9.24% to $90.77 million, according to Coinglass. However, longs dominated the liquidations with $471,170 liquidated, which could push the SHIB price in the red. Whilst, shorts account for nearly half of these liquidations, making their impact not-so-significant.

Also Read: Will The Meme Coin Market Cap Hit $100 Billion on Bullish Drive?