Shiba Inu (SHIB) witnessed a substantial spike in its token burn rate, surging by over 2,600% within a single day. This marked increase has captured the interest of the crypto community and has led to speculation about the potential resurgence of the popular memecoin. According to data from Shibburn, a total of 14.91 million SHIB were incinerated and removed from circulation in the past 24 hours, showcasing a 2,611% escalation in the burn rate of Shiba Inu tokens.
What Drives Token Burns in Shiba Inu?
The Shiba Inu community has been consistently burning tokens to curtail the overall supply, which could potentially drive up the value of the remaining tokens. Recently, two significant transactions each burned around 5 million SHIB. This latest activity underscores the community’s dedication to boosting SHIB’s value by minimizing supply.
These burn events have cumulatively removed 410.72 trillion SHIB from circulation. This strategic move aims to limit token availability, thereby increasing demand and potentially raising the token’s market value. This approach has been effective in attracting investor interest and fostering positive market sentiment towards Shiba Inu.
Will Shiba Inu’s Market Trend Upwards?
Despite recent volatility in the cryptocurrency market, certain experts remain hopeful about SHIB’s potential owing to its high token burn rate. Technical indicators suggest that if the current bullish trend persists, SHIB might encounter resistance levels at $0.000016, $0.000017, and possibly $0.000018 soon. Conversely, should downward pressure intensify, SHIB could dip below support levels of $0.00001550 to $0.00001450.
Key Takeaways for Investors
For those considering investment in Shiba Inu, here are some actionable insights:
- The substantial token burn rate could lead to a supply shortage, boosting SHIB’s value.
- Investors should watch for resistance and support levels to make informed trading decisions.
- Increased trading volume and decreased Open Interest in futures suggest prevailing market sentiment.
Currently, SHIB has decreased by over 3% in the last day, with its price standing at $0.00001539. Despite this decline, the altcoin’s trading volume surged by 16% to $238.79 million, while the Open Interest (OI) in Shiba Inu futures dropped by 13%, indicating a bearish trend in the market.