Shiba Inu’s Burn Rate Nosedives 62% as Price Plunges Below $0.00002

The Shibburn tracking platform reported a staggering 62% decline in Shiba Inu’s (SHIB) burn rate, the second-largest meme cryptocurrency by market capitalization. Consequently, the SHIB price plunged below the crucial $0.00002 level.

SHIB Price Tumbles Below $0.00002

*Shiba Inu Price Action. Source| CoinMarketCap*

SHIB experienced a 5.15% price drop, pushing it below the important psychological threshold of $0.00002. This latest decline followed a similar rapid drop on Friday, though SHIB managed to recover above the $0.00002 mark on the same day. Currently, Shiba Inu trades at $0.00001956.

Bitcoin’s Influence on SHIB

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The SHIB price pullbacks mirrored the movements of Bitcoin, the world’s leading cryptocurrency. On Friday, Bitcoin lost 2.77%, dropping from $67,000 to $65,216. Today, BTC declined further from $66,740 to $65,590, a 1.75% decrease. At the time of writing, Bitcoin trades at $65,453.

Whales Capitalize on the Dip

🐳 Wallets holding 10 or more Bitcoin have collectively just matched their same level of holdings from exactly 2 years ago. Much has changed since then, including a rise in Bitcoin's market value by +226%.

Many believe that FTX was successfully suppressing cryptocurrency prices… pic.twitter.com/O90gxrKy8N
— Santiment (@santimentfeed) June 17, 2024

Taking advantage of the recent Bitcoin plummets that dragged down SHIB and other altcoins, whales holding 10 or more Bitcoins actively bought the dip. According to Santiment’s on-chain analytics data, these large-scale investors’ BTC holdings now match the levels they held exactly two years ago when Bitcoin’s market value was 226% lower.

The Correlation Between Bitcoin and SHIB

Santiment’s report highlights a strong correlation between the holdings of wallets with 10+ BTC and Bitcoin’s overall market value. This trend extends to Shiba Inu and other altcoins, as they tend to follow Bitcoin’s lead, not only in its downward movements but also in its upward trajectory.

Weekly Burn Performance Improves

In the past 24 hours, there have been a total of 93,088 $SHIB tokens burned and 3 transactions. Visit https://t.co/t0eRMnyZel to view the overall total of #SHIB tokens burned, circulating supply, and more. pic.twitter.com/bkcIF6iyBS
— Shibburn (@shibburn) June 17, 2024

While the 24-hour burn rate took a significant hit, the weekly burn outcome for SHIB saw a remarkable 743.98% rise. In the past week, almost 400,000,000 SHIB tokens were sent to unspendable wallets, signifying a substantial increase in this metric.

In conclusion, although the recent plunge in SHIB’s burn rate and its price dropping below $0.00002 raised concerns among the Shiba Inu community, the improved weekly burn performance and the ongoing buying activity by large-scale Bitcoin investors suggest a potential market recovery may be on the horizon.

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.