Cryptocurrency Market Opens Weak, Bitcoin and Ethereum in Decline
The cryptocurrency market started off on a weak note today, with both Bitcoin and Ethereum experiencing a downward trend. Bitcoin’s value dropped by 1.4%, while Ethereum saw a decline of 2.36%.
Shiba Inu’s Price Slides Despite Increased Burn Rate
Investors were surprised to see Shiba Inu’s price decrease by nearly 2.5% in the last 24 hours, despite a recent spike in its burn rate. The burn rate of the meme coin increased by 310% earlier this week due to growing interest in Shibarium, a layer-2 blockchain launched by Shiba Inu last year.
Growing Interest in Shibarium, But Concerns Remain for SHIB
Within the past 24 hours, over 12.46 million SHIB tokens were burned, resulting in a 321% increase in burn rate for the meme coin. One transaction stood out among the rest, burning over 12.43 million SHIB tokens.
The total number of SHIB tokens burned so far exceeds 410.69 trillion. In the last seven days alone, there was an exponential rise in burn rate, with 264.20 million tokens sent to burn addresses within just 24 hours.
Massive Token Burn Fails to Boost SHIB Price
Coin burning is typically done to decrease token supply and increase its value, as investors prefer scarce cryptocurrencies over those with unlimited supply. However, the recent burn attempt for SHIB did not lead to an increase in its price.
Currently, SHIB is valued at $0.00001063, showing a decline of 2.6% in the last 24 hours. The cryptocurrency has a market capitalization of $6.26 billion, making it the 17th largest in the market. Trading volumes have increased by 22% within the past 24 hours.
Despite being hailed as the “Dogecoin killer” due to its significant growth in 2021, Shiba Inu is still trading below its all-time high of $0.00008845 reached in October 2021.
In the past 24 hours, the number of addresses holding SHIB tokens has increased by 0.015% to reach 1.36 million. Additionally, over $98,000 worth of SHIB trades were liquidated during this timeframe.
Hot Take: SHIB Burn Rate Spikes 310%, Can It Spur Price Rally?
The recent surge in burn rate for Shiba Inu’s SHIB token has failed to generate a price rally for the cryptocurrency. Despite the increased interest in Shibarium and millions of tokens being burned, SHIB’s value continues to decline. Investors are now wondering if future burn attempts will have a more positive impact on SHIB’s price or if other factors are at play. With its reputation as the “Dogecoin killer” still intact, Shiba Inu will need to overcome these challenges to regain its momentum in the market.
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