The cryptocurrency market experienced a weak performance on Wednesday, following a surge that connected the night of January 1st to the 2nd. Bitcoin, leading the trend, witnessed a significant drop along with many altcoins, including a 6% and 6.53% decrease in Bitcoin and Ethereum, respectively. This downturn also impacted the meme coin Shiba Inu, which fell by 7% over 24 hours despite an increase in its token burn rate earlier in the week.
Over the past day, more than 12.46 million SHIB tokens were burned, marking a 321% increase in the burn rate. A notable transaction involved the transfer of over 12.43 million SHIB tokens to another address for burning. The total number of SHIB tokens burned to date has now exceeded 410.69 trillion, with a dramatic 500,000% increase in burn rate since last November.
Investors typically prefer cryptocurrencies with a finite supply and significant market capitalization over those with unlimited supply. Token burning is a strategy used to decrease the supply of tokens and potentially increase their value. However, despite these efforts, the recent SHIB token burns have not succeeded in raising Shiba Inu’s price.
At the time of writing, SHIB’s price has dropped by 10% in the last 24 hours, trading at $0.00000947, and has added an extra zero to its price point. SHIB currently holds a market value of $5.75 billion, ranking it as the 17th largest cryptocurrency. The price decline was accompanied by a 90% increase in trading volume over the same period.
Shiba Inu gained massive attention from investors in 2021, earning the nickname “Dogecoin killer.” However, it is still trading far below its all-time high (ATH) of $0.00008845 recorded in October 2021. Despite the recent sharp decline, the number of addresses holding SHIB tokens has increased by 0.015% in the last 24 hours, surpassing 1.36 million. Additionally, over $800,000 worth of SHIB transactions were liquidated following the recent drop, as traders cleared long positions in anticipation of ETF expectations.