Shiba Inu Burn Rate Soars 3900%: Can It Drive a Price Reversal?

Shiba Inu Burn Rate Soars 3900%: Can It Drive a Price Reversal?

Shiba Inu’s (SHIB) burn rate skyrocketed by 3900% within a 24-hour period, with a single wallet contributing 4.03 million burned tokens. This significant reduction in circulating SHIB tokens has stirred the cryptocurrency community, potentially leading to a price increase due to decreased supply.

The recent surge in Shiba Inu’s burn rate has caused excitement within the crypto community. By removing SHIB tokens from circulation, the burn process aims to reduce the overall supply, possibly driving up the token’s value. The 3900% increase in the burn rate was largely influenced by one wallet, which burned 4.03 million tokens. This community-driven effort, along with smaller contributions from other members, has significantly cut down SHIB’s circulating supply.

Related article: Shiba Inu (SHIB) Price Faces Resistance at $0.00002835 Amid Selling Surge

Whale Activity And Market Sentiment

Moreover, whales and major SHIB holders have actively been purchasing tokens, adding to the optimism. Nine whale wallets collectively invested $35.2 million to acquire 1.356 trillion SHIB tokens. This substantial investment indicates the whales’ confidence in SHIB’s potential for future growth. The combination of reduced supply through burning and increased whale buying has sparked hope among investors and traders for a possible SHIB price rally.

Source: CoinMarketCap

Despite the whale accumulation, SHIB was trading at $0.0000253, reflecting a 1.60% decline over the last 24 hours. The price remained mostly sideways, showing no clear signs of a reversal. Over the past three months, SHIB’s price has exhibited a bearish trend with multiple lower lows and lower highs.

Related article: SHIB Team Issues Major Einstein-Inspired Warning to Community

Network Growth And User Interest

Network growth for SHIB has also seen a decline, indicating that new addresses are losing interest in the token. If this trend continues and new users are not attracted to SHIB, it could further pressure the token’s price. Additionally, the velocity of SHIB tokens has significantly dropped, suggesting that the frequency of trades has decreased materially in recent days.

While the burn rate and whale investments provide some positive signals, the overall bearish trend, declining network growth, and reduced trading velocity present challenges for SHIB’s future performance.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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