Shiba Inu Burn Rate Surges 360%, Pushing Price Up by 2%

Trending memecoin Shiba Inu (SHIB) has caught the crypto community’s attention with its burn mechanism as its burn rate surged by over 360% in the last 24 hours. Consequently, the coin’s price jumped by 2% triggering positive sentiment among investors. Interestingly, the hike in the burn rate coincides with the global crypto market rally this week.

Shiba Inu Community Destroys 12 Million Tokens

In a recent development, Shibburn, a dedicated Shiba Inu burn tracker, has revealed that many SHIB tokens have been removed from circulation through burn wallets. According to data from the aforementioned tracker, exactly 11,991,894 SHIB were destroyed over the last day. As a result, the burn rate, the percentage amount of tokens sent to burn wallets, has surged by 360.14% at the time of writing.

The burn rate spike was catalyzed by some notable transactions moving significant amounts of SHIB in single transactions. For example, at approximately 20 hours from press time, a wallet identified as 0x39f… destroyed 2.1 million SHIB tokens. Three hours later, another wallet removed over 1 million tokens from circulation. Furthermore, about seven hours ago from the time of writing, the largest transaction took place by a wallet labeled 0x89d, destroying more than 3 million tokens at once. Following that, three consecutive transactions were recorded, moving at least 1 million tokens each to burn addresses.

It is important to note that the reason for these burns is to drastically reduce the amount of Shiba Inu coins in circulation. The intent is to leave a limited supply by creating scarcity which can in turn, potentially impact the price of the token positively. So far, the Shiba Inu community, popularly referred to as the ‘SHIB Army,’ has collectively burned over 410 trillion SHIB, leaving more than 583 trillion lying around.

Even though the circulating supply is still huge, it does not deter the mind of the community from the task at hand as they actively destroy staggering amounts monthly.

Shiba Inu Price Movements

Meanwhile, the price of SHIB has reacted positively to the latest burn hike. According to data from CoinMarketCap, Shiba Inu is currently changing hands at $0.00002603 representing a 2.11% jump. What is more, the activities surrounding the coin as portrayed by the trading volume, have grown by 33% over the last day to $1.2 billion. Shiba Inu positions as the second-largest memecoin after Dogecoin (DOGE) with a live market cap of $15.3 billion.

Shiba Inu investors continue to hope for a rally that can shoot the price of the token to the coveted $0.0001 level. However, for this to happen, the coin has to continue trading above the critical level of $0.000025. This can first trigger a move from $0.00003 to $0.00005 and then further to $0.0001.

According to Coinglass, SHIB futures open interest increased by 9.24% to $90.77 million. But with $471,170 liquidated, longs led the liquidations, which might send the SHIB price down.