The SHIB token has shown a remarkable increase in its burn rate, even as its price has faced a significant decline. According to Shibburn, a platform that tracks memecoins, hundreds of millions of SHIB tokens have been moved to unspendable wallets. This major burn event coincided with a low price but a slight increase from a previous drop of over 8% recorded on Tuesday.
In the last 24 hours, the burn rate of SHIB has surged by an astonishing 2,834%. Despite the high burn rate, the number of tokens burned has remained unchanged since Tuesday. The total burn increased from just over 7 million to a massive 232,222,042 SHIB. There have been eight burn transactions, with the most significant burning 225,637,580 SHIB, resulting in an unspendable wallet. Other significant transfers moved 1,966,874 SHIB, 1,964,027 SHIB, and 1,961,799 SHIB to dead wallets.
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SHIB Price Rises 8% Amid Whale Activity
In the past 24 hours, the price of SHIB has increased by 8%, rising from $0.00002350 to $0.00002207. SHIB is trading at $0.00002206, 2.3% higher than the previous month, and despite the increase, SHIB has struggled to maintain bullish momentum, with two attempts to penetrate the upper support level failing. The recent price decline was accompanied by increased activity from a new generation of whales. Approximately 4.3 trillion SHIB tokens were sold to Coinbase for trading, with most purchased when SHIB reached its all-time high in 2021. Additionally, 600 billion SHIB were bought on Robinhood and transferred to cold wallets.
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The surge in SHIB’s burn rate is significant, as many tokens have been withdrawn. However, the recent price decline and the emergence of new whales complicate SHIB’s market dynamics. The unpredictable nature of the memecoin market continues to impact SHIB’s price despite the increased burn rates.
It is important to note that the burning mechanism aims to drastically reduce the amount of SHIB tokens in circulation, thereby creating scarcity which could potentially impact the price of the coin. So far, the Shiba Inu community, popularly called the SHIB Army, has succeeded in destroying over 410 trillion SHIB, remaining 583 trillion in circulation.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.