Shiba Inu Burn Rate Soars as Crypto Market Declines
The cryptocurrency market experienced further losses on Thursday, with Bitcoin, Ethereum, and smaller altcoins all seeing declines. Bitcoin’s price decreased by 2.82% while Ethereum showed a decline of 4.50%. Even the popular meme coin, Shiba Inu (SHIB), saw a notable 6% dip in price over the past 24 hours. However, what stands out is the significant increase in the SHIB burn rate, which has skyrocketed by nearly 4,000%.
Concerns Over SHIB Burns
The recent surge in the Shiba Inu burn rate was expected to push prices up, but instead, it coincided with a downturn in the market. This has raised concerns among investors who were hoping for a positive impact on SHIB’s price. The spike in burn rate is related to the increased interest in Shibarium, a layer-2 blockchain introduced by the Shiba Inu team.
Significant Increase in SHIB Burn Rate
According to Shibburn, over 1.21 million SHIB tokens were burned in the last 24 hours, reflecting a massive increase of 3,963.36% in the burn rate. One notable transaction involved the transfer of over 1 million SHIB tokens from an unidentified wallet to a dead wallet. The total number of SHIB tokens burned has now surpassed 410.69 trillion, which accounts for more than 41% of the max total supply.
Shiba Inu Price Continues to Decline
Although crypto burns are typically used to reduce supply and increase prices, the recent spike in SHIB burn rate did not have the desired effect on its price. As of now, the SHIB price is $0.000009628, reflecting a 5.02% decrease in the last 24 hours. Despite this, there has been a surge in SHIB demand, with the trade volume soaring by 66.73% to $301.51 million in the past 24 hours.
Hot Take: Shiba Inu Struggles as Burn Rate Surges
The Shiba Inu cryptocurrency is facing challenges as its burn rate reaches new heights. Despite hopes that increased burns would boost prices, the market downturn has prevented SHIB from gaining momentum. With the burn rate skyrocketing by nearly 4,000%, concerns are mounting among investors. However, there has been an increase in SHIB demand and a surge in trade volume, suggesting that there is still interest in the meme coin. It remains to be seen how the market will react to these developments and whether SHIB can recover from its recent price declines.
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