Shiba Inu, the meme coin heavyweight, has experienced a remarkable surge in its burn rate, increasing by an astounding 482.88% in just 24 hours. This development has sparked renewed interest and excitement within the SHIB community, as over 60 million SHIB tokens were recently burnt, significantly reducing the total token count.
Aggressive Burning Efforts Fail to Boost Price
Despite the aggressive burning efforts, Shiba Inu’s price performance has been lackluster. Over the past week, the price has dropped by 10%, currently trading at approximately $0.00001737. The price action has been marked by high volatility, indicating the sensitive and reactive nature of the SHIB market.
Ethereum ETF Launch: A Potential Catalyst for Recovery
The anticipated launch of the Ethereum ETF has generated considerable buzz in the crypto community. Analysts are closely monitoring whether this event will help SHIB recover from its recent downturns. An Ethereum ETF could renew investor confidence and potentially translate into upward momentum for SHIB.
Surge in Whale Activity Exerts Selling Pressure
Data from IntoTheBlock suggests a surge in the activity of large holders, with an increase in large holder net flows. However, the rise in negative flows signifies significant selling has been taking place. This trend might be a contributing factor to the recent declines in SHIB’s market value.
Unpredictable Burn Mechanism and Lack of Price Impact
The burn rate’s erratic behavior, with 135 million tokens burnt over the past week from five prominent wallet addresses, shows the variability and unpredictability in SHIB’s burn mechanism. Historical data suggests that increased burn rates should theoretically result in higher prices due to scarcity; however, this has not been the case for SHIB.
Read Also: Is Shiba Inu (SHIB) Poised for a Comeback? Key Factors to Watch!
In conclusion, while Shiba Inu has experienced a substantial increase in its burn rate, this has yet to translate into positive price movement. The launch of the Ethereum ETF offers a potential turning point, one that market watchers are keenly observing. The recent whale activity suggests significant selling, which might have exacerbated the price declines. Investors should keep an eye on these developments as they could offer insights into SHIB’s future performance.
