Unveiling the Reasons Behind Shiba Inu’s Massive Burn Rate Surge
The Shiba Inu burn rate has experienced a dramatic 5,569% spike within the last 24 hours, continuing a positive trend observed over the past week. This surge occurs amidst a struggling crypto market and a significant drop in SHIB’s price, prompting questions about what is driving this unprecedented burn rate.
Shiba Inu Sees 5,549% Surge in Burn Rate
The recent spike in Shiba Inu’s burn rate has reignited positive sentiment among investors. According to Shibburn, a Shiba Inu burn tracking website, nearly 12 million SHIB tokens were burned in the last 24 hours, marking a 5,549% increase compared to the previous day.
Interestingly, this is not the most significant surge seen this week. On Monday, a massive 202,974% spike was recorded as investors moved over 12 million tokens to the burn address within a 24-hour period.
Analysis of Burn Transactions
In the last day, only six transactions were recorded for burning SHIB tokens. A single wallet, identified as “0x60812..39fe80,” accounted for over 90% of the total burns, sending around 10.1 million coins to the burn wallet in two separate transactions.
These significant daily burn rates have also impacted the weekly burn rate. Shibburn’s data reveals that over the past seven days, approximately 402.7 million tokens have been burned, resulting in a 1,098.7% increase in the weekly burn rate.
SHIB Burns Spike Despite Price Drop
Typically, spikes in Shiba Inu burn rates align with positive market sentiment, where investors are more inclined to send coins to the burn address to drive up prices. However, this time, the burn rate surge coincides with a sharp decline in SHIB’s price.
Data from CoinMarketCap shows a 9.18% drop in Shiba Inu’s price over the past day, contrasting sharply with the 5,549% increase in the burn rate. Similarly, the token’s price has plummeted approximately 18% over the week, while the burn rate has soared by 1,098%.
During this period, SHIB’s daily trading volume has jumped 128% to $594 million. However, the falling prices suggest that this increased volume is primarily driven by sellers rather than buyers.
Conclusion
The extraordinary spike in Shiba Inu’s burn rate amidst a declining price trend raises intriguing questions about investor strategies and market dynamics. While the burn rate’s surge could potentially stabilize or boost SHIB’s value in the long run, the immediate effects reflect a complex interplay of market forces and investor behaviors.