Shiba Inu (SHIB) is back in the spotlight with a massive 570% surge in its burn rate over 24 hours. This significant increase in burning tokens could propel SHIB towards its long-held target of $0.0001.
The community incinerated over 12 million SHIB tokens, significantly reducing the overall supply and potentially impacting tokenomics positively. This burn frenzy comes amidst a price rally, with SHIB breaking above the crucial resistance level of $0.000025.
SHIB Burn Rate Skyrockets
Shiba Inu’s burn rate has been a major focus for the community, aiming to decrease the circulating supply and potentially drive up the price. According to Shibburn, a platform tracking SHIB burns, the burn rate witnessed a staggering 569.5% increase in the last day.
This surge resulted in over 12.70 million SHIB tokens being sent to dead wallets, effectively removing them from circulation. Four specific wallet addresses were instrumental in this burn spike, contributing to the majority of the tokens burned.
Community Efforts Fuel the Burn
Wallet addresses like 0xa9d1 and 0x608 played a pivotal role in transferring a combined 5.6 million SHIB to dead wallets. Additionally, another wallet, 0xc66, contributed over 1 million SHIB tokens to the burn. These substantial transactions significantly impacted the overall burn rate.
Burning SHIB: A Path to Higher Prices?
The core principle behind burning is simple: reducing supply with constant or increased demand can lead to price appreciation. This strategy is being actively pursued by the Shiba Inu community, and the recent burn rate surge has instilled optimism.
SHIB Price: Poised for Further Growth?
SHIB has successfully broken above the $0.000025 resistance level, currently trading at $0.00002562, with a 1.39% gain. Moreover, the 24-hour trading volume has jumped 33.58% to $1.17 billion, indicating increased market activity.
As previously reported by Coingape, SHIB’s price is well-positioned to reach $0.00003 or even $0.00005 if it sustains its position above the resistance level. In the long run, sustained bullish momentum could propel the coin towards the much-anticipated $0.0001 mark.
Positive Sentiment and Open Interest
The overall positive market sentiment has undoubtedly played a role in Shiba Inu’s (SHIB’s) recent surge. Furthermore, Shiba Inu (SHIB) futures open interest has also seen a rise of 9.24%, indicating investor interest in the meme coin’s future performance.
However, it’s crucial to note that long-term liquidations currently dominate the market. While short positions are also being liquidated, their impact is less significant. This dynamic could potentially cause a temporary price dip for coins.
Conclusion
The recent surge in SHIB’s burn rate and price rally have invigorated the Shiba Inu community. While short-term fluctuations are possible, the burning efforts and bullish momentum suggest a promising future for the coin. Whether it reaches the coveted $0.0001 mark remains to be seen, but the current developments paint an optimistic picture.