Cryptocurrency Shiba Inu (SHIB) experienced an extraordinary spike in its token burn rate, soaring by 2814% within 24 hours. This surge happened even as SHIB’s market price continued to decline. The burn rate increase has been attributed to remarks by SHIB’s marketing leader Lucie about the potential of a SHIB Exchange Traded Fund (ETF). Despite the heightened burn rate and optimistic ETF discussions, SHIB’s price remained stagnant.
Why Did the SHIB Burn Rate Increase?
Data from Shibburn, a platform tracking SHIB token burns, revealed that approximately 7.9 million SHIB tokens were destroyed on June 11 through multiple transactions. Token burning is intended to lower the circulating supply, theoretically boosting the remaining tokens’ value. Yet, the SHIB price continued its decline, indicating heavy market sales.
The Shiba Inu community played a crucial role in this process. Two wallet addresses were particularly notable for burning large quantities of SHIB. The first address, starting with 0x608, burned around 5.35 million SHIB tokens in two transactions.
What Are the Expectations from SHIB ETF?
Comments from Lucie about a possible SHIB ETF generated excitement among SHIB enthusiasts, especially after Spot Ethereum ETFs were approved. However, she expressed doubts about institutional investors recognizing SHIB’s value. Lucie hoped that major financial entities like BlackRock would eventually see the potential in Shiba Inu, but institutional reactions remain uncertain.
Currently, SHIB has failed to break the crucial resistance level of $0.000025. Surpassing this threshold could potentially elevate SHIB’s value to $0.00003 and even $0.00005 in the short term.
Concrete Insights
– Monitor wallet activities starting with 0x608 and 0xc66 for significant SHIB burns.
– Watch for SHIB’s performance around the $0.000025 resistance level.
– Keep an eye on institutional interest, particularly from firms like BlackRock.
Achieving and maintaining higher resistance levels could pave the way for a more ambitious target of $0.0001. However, SHIB’s price remains far below its all-time high of $0.00008845, and the persistent downward trend poses a considerable obstacle.