Shiba Inu’s burn rate has soared by nearly 570%, signaling a bullish market sentiment and potential for the price to reach $0.00003.
- Shiba Inu’s price and market dynamics show a 570% increase in burn rate. Increased daily active addresses and open interest suggest robust market activity.
In the current bullish crypto market, Shiba Inu [SHIB] has been closely aligning with broader trends, marked by an 11.8% increase over the past week.
Despite this growth, Shiba Inu’s price movements in the last 24 hours have been more modest, with only a 1.7% uptick, as it trades at $0.00002593.
This figure represents a slight retracement from its 24-hour peak. The relatively stable price performance underscores a cautious optimism among investors and traders.
Implications of high burn rate
Amid these market movements, there has been a significant development in Shiba Inu’s token dynamics.
The memecoin’s burn rate, which refers to the rate at which tokens are permanently removed from circulation, soared by approximately 569% on Wednesday, the 22nd of May.
Source: Shibburn
This surge, as shown by Shibburn, a dedicated tracker for Shiba Inu token burns, has fueled optimism in the market regarding the memecoin’s future valuation.
This dramatic increase in the burn rate led to a reduction of Shiba Inu’s market supply by 12.70 million SHIB tokens. Notably, four specific wallet addresses contributed significantly to this surge.
One address alone was responsible for transferring 4.6 million SHIB to a dead wallet in two major transactions.
Another wallet moved 1.01 million SHIB, and a third contributed 1.04 million SHIB to the burn rate increase.
Collectively, these actions have led to a massive total of 410.72 trillion SHIB tokens burned, with the current circulating supply standing at 583 trillion and 6.2 trillion SHIB staked across various platforms.
The reduction in supply due to these burns is anticipated to be a key driver in increasing the value of SHIB.
In economic terms, a decreased supply with maintained or increased demand is likely to lead to price appreciation. This principle has injected a wave of optimism into the Shiba Inu community, expecting that the decreased supply will bolster the token’s price.
Shiba Inu’s market activity heats up
Further supporting this optimistic outlook, data from Santiment shows a significant increase in Shiba Inu’s daily active addresses.
The number surged from below 4,000 at the start of the month to over 11,000 today, suggesting robust activity and possibly increased buying on SHIB.
Source: Santiment
This bullish sentiment is echoed in the open interest data from Coinglass, where Shiba Inu’s open interest has risen by nearly 10% in the past 24 hours, reaching $91.61 million.
The open interest volume also saw a significant increase, up by 44% to $325 million.
This surge in open interest indicates that more market participants are entering or maintaining their positions rather than exiting, a sign of heightened market activity and new capital influx supporting the price increase.
According to a recent analysis by AMBCrypto, if a breakout occurs, SHIB’s price might first reach $0.000026. At that level, the memecoin might experience a slight correction due to increased liquidations.
However, a breakout above this level could set SHIB on a path to touch $0.00003 in the coming weeks, marking a significant milestone for the meme-inspired cryptocurrency.
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