The Shibburn tracking platform reported an astounding increase in SHIB meme coin burns, with several hundred million coins transferred to dead-end wallets. Despite this massive burn, the coin’s price remains down, recovering only slightly after an over 8% decline on Tuesday. Notably, the burn rate surged by 2,834%, reflecting a significant change in one of SHIB’s key metrics within the last 24 hours.
Significant Increase In SHIB Burn Rate
Over the past day, the amount of SHIB coins removed from circulation increased drastically, from just over 7 million to an impressive 232,222,042 SHIB. This considerable burn occurred through eight transactions, the largest of which sent 225,637,580 SHIB to an unspendable wallet.
Image via Shibburn
This transaction accounted for nearly the entire burned amount. Additionally, three other major transfers moved almost 2 million SHIB each to dead wallets, contributing to the overall burn rate surge. In the same 24-hour period, the SHIB price experienced an 8.8% decline, dropping from $0.00002350 to $0.00002207.
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Despite the price drop, SHIB attempted to break out from this support level twice, first reaching $0.00002206 before being pushed back down. Subsequently, it made another attempt to rise, currently trading around this level with a 3% increase.
Increased Whale Activity
This price decline coincided with increased activity from whale investors. Notably, investors transferred 4.3 trillion SHIB to the Coinbase exchange for sale, with a large portion of these coins originally bought back in 2021. Simultaneously, buyers purchased 600 billion SHIB on Robinhood and moved them to a cold wallet.
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Overall, despite the impressive burn rate surge of 2,834%, SHIB’s price remains relatively low. The large number of SHIB coins burned significantly reduces the supply. However, the price dynamics indicate a complex interaction between burn rates, whale activity, and market responses.
Thus, while the burn rate increases dramatically, the market price of SHIB reflects a nuanced and multifaceted scenario.
