Shiba Inu News – Shiba Inu Burn Rate Spikes 300%: Will SHIB Price Surge?

Shiba Inu News – Shiba Inu Token Burn Rate Jumps 300%: Is a SHIB Price Rally Imminent?

Crypto News- Shiba Inu (SHIB), the beloved dog-faced meme coin, has once again captured the spotlight in the crypto realm with its recent developments. Shibburn, a trusted platform monitoring SHIB token burns, reported a staggering 310% surge in Shiba Inu’s burn rate on Friday, May 31. This remarkable uptick in burn rate has ignited excitement among traders and investors alike.

A Dramatic Surge in Burn Rate: 310.99% Increase in 24 Hours

The surge in SHIB’s burn rate has effectively diminished its circulating supply, potentially bolstering its tokenomics in the long haul. Over the past 24 hours alone, the burn rate skyrocketed by 310.99%, as per Shibburn data. During this timeframe, a whopping 9.74 million SHIB tokens were incinerated through multiple community-driven transactions.

Three specific wallet addresses played a pivotal role in this exponential rise in burn rate. Among them, wallet address 0xa9d1… emerged as a major contributor, transferring 4.91 million SHIB to a dead wallet through two significant transactions conducted hours apart. Initially, the holder torched 2 million SHIB coins, followed by another 2.91 million SHIB tokens to a dead wallet.

Furthermore, wallet address 0xc8d… also contributed significantly by transferring 1.5 million SHIB tokens to a dead wallet shortly before the reporting period. These substantial transactions have been instrumental in propelling the recent surge in Shiba Inu’s burn rate.

Moreover, community wallet 0x608… sent an additional 1.04 million SHIB tokens to a dead wallet within the last 24 hours, further amplifying the burn rate. Consequently, the cumulative amount of SHIB tokens burnt has reached a remarkable 410.72 trillion. The reduction in SHIB’s supply is seen as a potential catalyst for enhancing the token’s value.

Economic Dynamics at Play: Supply Decrease and Demand Surge

In economic terms, a decrease in supply coupled with sustained or increasing demand typically leads to price appreciation, a principle applicable to cryptocurrencies as well. This development has infused the Shiba Inu community with optimism, with traders and investors closely monitoring the meme coin’s progress. Will SHIB Price Rebound?

Previously, the price of Shiba Inu successfully breached the critical resistance level of $0.000025 and has managed to maintain its position above that level despite the recent bearish sentiment. Currently, SHIB is trading at $0.00002572, marking a 7.41% decline on Friday. Additionally, the second-largest meme cryptocurrency boasts a market capitalization of $15.14 billion.

Trading Volume Decline and Potential Price Targets

The 24-hour trading volume for SHIB has witnessed a significant decrease of 40.90%, amounting to $1.01 billion. According to a recent report by Coingape, if SHIB manages to sustain its position above this crucial resistance level, it could potentially surge to $0.00003 or even $0.00005. Moreover, the shrinking supply due to the surge in Shiba Inu burn rate could facilitate a rebound.

Looking ahead, if the bullish momentum persists, SHIB could target a rally towards $0.0001. However, if SHIB succumbs to the prevailing bearish trend, the next crucial support level would be at $0.000024. Meanwhile, SHIB futures open interest has declined by 9.99% to $106.59 million, as reported by Coinglass.

Furthermore, amidst the ongoing declines, long positions have faced liquidations totaling $1.20 million, potentially exerting downward pressure on the SHIB price. Conversely, short liquidations amounted to only $91,760, which may not be sufficient to counterbalance the impact of long liquidations.

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