Shiba Inu’s burn rate has seen a dramatic rise, increasing by 5,569% in just 24 hours. Despite this significant burn activity, SHIB’s price has not responded positively, raising questions in the cryptocurrency community. The reasons behind this massive burn rate, particularly in the context of the broader crypto market declines, remain unclear.
How Did the Burn Rate Increase?
The substantial increase in Shiba Inu’s burn rate defies the prevailing market trend. According to Shibburn, which monitors Shiba Inu burns, approximately 12 million tokens were sent to unrecoverable wallets in the past day. This represents a 5,549% increase compared to the preceding day. However, this increase pales in comparison to the 202,974% surge observed earlier in the week when millions of tokens were burned within a 24-hour window.
The burns were executed through six different transactions, with the largest coming from a single wallet address “0x60812..39fe80,” responsible for burning 10.1 million tokens in two transactions, accounting for over 90% of the total burn. Over a seven-day period, Shibburn reported that more than 402.7 million tokens were burned, marking a 1,098.7% increase for the week.
What Is the Current Price Status of SHIB?
Despite the burn efforts aimed at reducing supply and boosting demand, SHIB’s price continues to struggle. In the last 24 hours, SHIB was trading at $0.00001815, reflecting a 6.5% decline. Over the past week, SHIB’s price dropped by 16.5%, despite a more than 1,000% increase in the burn rate. During this period, SHIB’s market capitalization fell to $10.5 billion, while its 24-hour trading volume surged by 41% to $602 million.
Key Takeaways from the Burn Rate Surge
- The burn rate increased 5,569% in 24 hours.
- Despite high burn rates, SHIB’s price decreased by 6.5% in the same period.
- A single wallet was responsible for over 90% of the burns.
- Weekly burn rate increase exceeded 1,000%, yet price dropped by 16.5%.
The surge in Shiba Inu’s burn rate highlights the volatility and unpredictability inherent in the cryptocurrency market. While the intended goal of burning tokens is to reduce supply and elevate prices, the actual market response may vary due to numerous external factors. Investors should cautiously monitor these dynamics as the market evolves.