Shiba Inu (SHIB), a popular memecoin, has significantly drawn attention in the cryptocurrency community with an impressive surge in its token burn rate. Data from Shibburn indicates that the token burn rate for SHIB escalated by approximately 570% on May 22. This notable reduction in SHIB’s supply might positively impact its price, thereby boosting investor confidence.
Which Wallets Drove the Burn Surge?
Recent data reveals that Shiba Inu’s token burn rate increased by 569.50% over the past 24 hours, with 12.70 million SHIB being burned and permanently removed from circulation. This surge was driven by four particular wallet addresses. Key among them, an address starting with 0xa9d1, moved 4.6 million SHIB to a dead wallet through two significant transactions. Another address, 0x608, transferred 1.01 million SHIB, while the community wallet 0xc66 contributed by burning 1.04 million SHIB. These transactions exemplify the community’s active role in the token burn process.
What Are SHIB’s Future Prospects?
The reduced supply of Shiba Inu tokens is seen as a potential trigger for price appreciation, provided demand remains stable or rises. This has fueled optimism among the Shiba Inu community, with investors closely monitoring the altcoin’s progress. SHIB has currently broken the resistance level at $0.000025, trading at $0.00002599—a 1.39% increase in the last 24 hours—boasting a market cap of $15.11 billion. Its 24-hour trading volume also saw a 33.58% surge, reaching $1.17 billion.
Key Inferences
- The token burn rate increased by 569.50%, removing 12.70 million SHIB from circulation.
- Four main wallet addresses were instrumental in the burn process.
- Breaking the $0.000025 resistance level is crucial for future price increases.
- Positive market sentiment and increased trading volume are driving SHIB’s price.
- Long-term rallies may see SHIB reaching $0.0001 if the momentum holds.
Analysts suggest that SHIB’s continued performance above this critical resistance level might propel its price to $0.00003 or even $0.00005. In the longer term, a rally could potentially drive SHIB to $0.0001. Positive market sentiment has notably lifted SHIB’s price, with SHIB futures’ open interest rising by 9.24% to $90.77 million. Despite a $471,170 long liquidation, shorts accounted for nearly half, lessening the impact on SHIB’s price.
