Shiba Inu Burn Rate Explodes 31,000% – Will Price Heat Up As Well?
May 04 2023 - 8:50AM
NEWSBTC
Shiba Inu (SHIB) has seen its burn rate skyrocket to impressive
heights. This incredible surge in burn rate is causing many to
speculate that a price reversal may be on the horizon, as the
token’s value continues to experience significant volatility.
As the burn rate of Shiba Inu continues to soar, the
cryptocurrency’s fate remains uncertain, leaving investors and
enthusiasts alike wondering what the future holds for this
meme-inspired token. Will Shiba Inu be able to
maintain its momentum and reach new heights, or will the current
volatility lead to a dramatic price u-turn? Related Reading: AVAX
Smart Contracts Hit 6-Month High – What This Means For Its Price
Shiba Inu Burn Rate Climbs, Signaling Potential For Price Reversal
Shiba Inu, the popular cryptocurrency inspired by the Shiba Inu dog
breed, has experienced an astonishing 30,940% surge in burn rate at
the time of writing, according to Shibburn’s data at the time of
writing. But what exactly does “burn rate” mean in the context of
cryptocurrencies? In simple terms, the burn rate refers to the
amount of tokens that are permanently removed from circulation.
When a cryptocurrency “burns” tokens, they are essentially
destroyed, which can have the effect of increasing the value of the
remaining tokens. In the case of Shiba Inu, the massive surge
in burn rate is an indication that more tokens are being removed
from circulation than ever before, which could potentially lead to
a supply shortage and a subsequent increase in value. Based on the
data presented, the Shiba Inu ecosystem is experiencing exponential
growth in the number of total transactions, resulting in a
significant transfer of 2,254,093,318 SHIB tokens to inactive or
“dead” wallets overnight. SHIB total market cap at 5.8 billion on
the daily chart at TradingView.com Related Reading: Top 5 Cryptos
To Watch This Week Amid US Banking Crisis The sudden transfer of
tokens to dead wallets is believed to be a response to the rapid
surge in transaction activity within the ecosystem. The data
highlights two specific addresses that were responsible for a large
portion of the transaction volume. One address was used to “burn”
2,005,265,274 SHIB tokens, effectively removing them from
circulation permanently. The other address burnt 246,743,138 SHIB
tokens, contributing to the overall reduction in circulating
supply. Where Shiba Inu Stands Right Now At the time of writing,
the price of SHIB on CoinMarketCap stands at $0.00001005, with a
24-hour rally of 0.83%, while experiencing a decline of 2.37% over
the last seven days. Despite the massive surge in the burn rate of
Shiba Inu tokens, the price of SHIB has shown little movement.
Source: CoinMarketCap One possible explanation is that the market
has already priced in the impact of the burn rate, and therefore,
the current token burn rate is not enough to move the price
significantly. Another factor could be the current market
conditions, which have been unfavorable to many cryptocurrencies,
including Shiba Inu. Furthermore, the sheer number of SHIB tokens
in circulation could be another contributing factor to the price
stagnation. With a circulating supply of over 394 trillion SHIB
tokens, any changes in the token burn rate would need to be
substantial to affect the overall supply and demand dynamics of the
market. -Featured image from Picography
SHIBA INU (COIN:SHIBUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
SHIBA INU (COIN:SHIBUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024