Shiba Inu Coin Burn Rate Skyrockets 570% During Market Rally

Shiba Inu (SHIB), the popular meme coin, has once again captured the attention of the crypto community with its latest developments. According to Shibburn, a tracker for Shiba Inu token burns, the burn rate for the meme coin surged nearly 570% on Wednesday, May 22, sparking optimism among traders and investors.

Shiba Inu Coin Burn Rate Skyrockets

The dramatic increase in the burn rate has significantly reduced Shiba Inu’s market supply, which could positively impact its tokenomics moving forward. In the past 24 hours, the burn rate soared by 569.50%, according to Shibburn. A total of 12.70 million SHIB tokens were incinerated in several transactions by the community. Notably, four specific wallet addresses played a major role in this surge.

The wallet address 0xa9d1… was responsible for moving 4.6 million SHIB to a dead wallet through two large transactions recorded a few hours ago. Additionally, another wallet address, 0x608…, transferred 1.01 million SHIB to a dead wallet within the same period. These substantial transactions have been pivotal in driving the recent spike in Shiba Inu’s burn rate.

Furthermore, another community wallet, 0xc66…, moved 1.04 million Shiba Inu tokens to a dead wallet, significantly contributing to the burn rate increase. Consequently, the total amount of SHIB tokens burned now stands at a massive 410.72 trillion. The reduction in supply due to these burn transactions is seen as a potential catalyst for boosting the value of SHIB.

For context, a lower supply with steady or increased demand could lead to price appreciation of any asset, including cryptocurrencies. This development has injected a surge of optimism into the Shiba Inu community, with many traders and investors closely monitoring the meme coin’s progress.

Will SHIB Surge to $0.0001?

The Shiba Inu price has successfully broken out from the $0.000025 level, which served as a crucial resistance point. As of Wednesday, SHIB was up by 1.39% to $0.00002562. Meanwhile, the second-largest meme crypto boasted a market cap of $15.11 billion.

Related: Shiba Inu Group Sets Standards for New NFT Collection

Additionally, SHIB’s 24-hour trading volume spiked by 33.58% to $1.17 billion. As earlier reported, the SHIB price is poised to surge to $0.00003 or even $0.00005 if it continues to trade above the critical resistance level. Moreover, a rally to $0.0001 could be anticipated in the long term if the bullish momentum sustains.

Shiba Inu’s price has surged significantly amid the overall positive sentiment in the market. Consequently, SHIB futures open interest also gained 9.24% to $90.77 million, according to Coinglass. However, longs dominated liquidations with $471,170 liquidated, which could push the SHIB price into the red. Meanwhile, shorts account for nearly half of these liquidations, making their impact less significant.