- The Shiba Inu cryptocurrency has experienced a dramatic surge in its token burn rate amid a significant price drop.
- This increased burn rate has caught the community’s attention, fueling speculation about a potential price rebound.
- Despite the rising burn rate, Shiba Inu’s price continues to face downward pressure from heavy sell-offs.
The Shiba Inu burn rate has surged over 12,800%, sparking community interest amid ongoing price declines. Could this reduction in supply lead to a future price recovery?
Shiba Inu Burn Rate Surges Over 12,800%
The Shiba Inu (SHIB) cryptocurrency has recently seen its burn rate skyrocket by an impressive 12,842%. This comes at a time when the SHIB price has plummeted nearly 11% due to substantial sell-offs, leaving many investors concerned. However, this dramatic increase in the rate at which SHIB tokens are being burned has sparked renewed hope within the community for a potential price turnaround.
Impact of the Burn Rate on Community Sentiment
While the current price of Shiba Inu remains under pressure, the sharp rise in the token’s burn rate has positively influenced community sentiment. According to Shibburn, a platform dedicated to tracking SHIB destruction, over 12 million tokens were burned in the last 24 hours alone. Notably, one address, identified as 0x608…, burned a staggering 10.15 million tokens through just two transactions. This substantial decrease in available tokens could, in theory, lead to a price increase if the demand remains constant or grows.
SHIB Price To Recover?
However, a quick recovery may not be on the horizon. The SHIB price recently slipped below significant support levels, raising the possibility of further declines. Currently, SHIB is trading close to dropping below $0.000018, making the need for a swift price recovery more urgent. Coinglass data shows an alarming 22.81 million long liquidation in the past 24 hours, which is extraordinarily high compared to the daily average liquidation figures. If the sell pressure persists, Shiba Inu could face additional price downturns.
Investor Sentiment and Market Behavior
The overall sentiment among SHIB investors has taken a hit, negatively impacting large-cap altcoins like Shiba Inu and Dogecoin. During a rally in March earlier this year, investors rushed to buy altcoins, driven by FOMO (Fear of Missing Out). However, as the market sentiments shifted, exits have become more frequent, exacerbating sell-offs and pressure on Shiba Inu’s price.
Conclusion
In summary, while the skyrocketing burn rate of Shiba Inu has injected a dose of optimism within the community, the ongoing price declines cast a shadow over these developments. The sharp rise in burned tokens could pave the way for a future price rebound, provided the demand for SHIB remains stable or increases. However, given the current market conditions and prevalent sell pressures, the road to recovery might require more than just an expanded token burn rate.
