The Shiba Inu token had a huge increase in its burn rate, going up by 5,569% in just one day. This is happening even though the rest of the cryptocurrency market is having a hard time and the price of Shiba Inu itself is declining.
Shibburn, a website that tracks how many Shiba Inu token are burned, says that about 12 million tokens have been destroyed recently, which has caused a big increase in the burn rate. One particular wallet is mostly responsible for this, having burned more than 90% of these tokens.
In the last week, the number of burned tokens has gone up by 1,098.7%, with a total of over 402.7 million tokens burned. Usually, when more tokens are burned, people are optimistic about the currency’s value going up.
But this time, the value of Shiba Inu has fallen by 9.18% in a day and 18% in a week. Also, there’s been much more selling of Shiba Inu tokens than buying.
In a surprising development, the Shiba Inu token has experienced a massive 5,569% increase in its burn rate over the last 24 hours. This spike continues a trend of positive burn rate activity from the past week but occurs during a period of significant struggle for the broader crypto market, with SHIB’s price seeing a notable decline.
Details on the Burn Rate Spike
According to Shibburn, a website dedicated to tracking SHIB token burns, approximately 12 million SHIB tokens were burned recently, resulting in a dramatic 5,549% surge. However, this was hardly the most major burns this week. On Monday, there was an even higher burn of 202,974%! In both incidents, millions of Shiba Inu tokens were sent to a particular address that can no longer be used. This is intended to make the remaining tokens more valuable.
The Major Players
This wallet executed two huge transactions, burning more than 10 million total tokens. In reality, one single wallet was responsible for burning almost 90% of all Shiba Inu coins burnt during that time period. Burning tokens implies transferring them to a selected address where they can no longer be used, effectively removing them from circulation.
Weekly Burn Rate Impact
This week there was a higher number of tokens burned than usual (almost 402.7 million). This increased the overall burn rate by more than 10 times (1098.7%). Burning means permanently removing tokens from circulation. In simpler words, a large number of tokens were removed from circulation this week, greatly raising the burn rate.
Shiba Inu Token: Price vs. Burn Rate
When more Shiba Inu coins are burned, the price typically rises as investors attempt to increase the value of the remaining tokens. The token burning is intended to drive up the price.
However, something strange is occurring right now. Despite an important rise in burning, the price of Shiba Inu token has been steadily decreasing. The recent increase in burns contrasts with an 18% loss in SHIB’s price on a weekly basis and a 9.18% drop in a single day. This is confusing because these two items usually go together.
Market Activity Analysis
Shiba Inu’s price is falling, but more coins are being traded than usual (up 128% to $594 million). This could indicate that people are selling their SHIBs rather than purchasing new ones, explaining why the price is falling.
In short, the Shiba Inu token burning rate increased greatly with the fact that the price decreased. This is not common because burning tokens normally causes the price to increase. Some people are burning a lot of tokens, but it appears that more people are selling Shiba Inu tokens than buying new ones, which could explain the price reduction.
Also Read: Shiba Inu Holders’ Accumulation Could Trigger Recovery
