- The Shiba Inu coin is experiencing a massive surge in its burn rate, surmounting an 800% increase after incinerating 107 million coins.
- This significant development suggests potential bullish price movement despite recent market turbulence.
- Experts have pointed to various key factors, including SHIB adoption and on-chain data, affecting market sentiments.
The Shiba Inu coin experiences an unprecedented burn rate spike, increasing over 800%, suggesting potential bullish moves in the market. Read more about the factors influencing SHIB’s price action.
Burn Rate Spikes Alongside Rising SHIB Adoption
The recent surge in Shiba Inu’s burn rate aligns with growing adoption, especially noticeable in the expanding acceptance of SHIB as a payment method. A noteworthy instance is a recent transaction where SHIB was utilized for a complete Web3 food delivery order, highlighting its growing mainstream acceptance.
According to Shibburn tracker’s data, there has been an 859.83% increase in the burn rate, largely due to the destruction of 107 million SHIB tokens in the past 24 hours. This aggressive burning activity has resulted in a total of 410.72 trillion SHIB tokens being removed from circulation so far.
Market Sentiment Amidst Burn Rate Increase
Despite the massive burn rate, Shiba Inu’s price has been relatively sluggish in the past day. This disconnect between the burn rate and the token’s price movement has ignited discussions around SHIB’s future price trajectory. On-chain data reveals mixed sentiments, with the burn activity instilling a sense of optimism among some traders.
Shiba Inu Coin Price Movement Analysis
Currently, SHIB’s price has seen a slight decrease, trading at $0.00002166, a 0.27% fall from the previous day. Weekly charts also show a 14.20% correction. However, on an hourly timeframe, the token experienced a 0.41% increase, reflecting the market’s mixed reactions to the rising burn rate.
Notably, the number of Shiba Inu holders has risen to 1.39 million, suggesting growing investor interest and possibly a strategy of buying the dip despite the recent downturn in price.
Derivatives Market Reaction
In the derivatives market, there has been a noticeable decline in trading activity and investor interest, coinciding with the price drop. SHIB Futures Open Interest (OI) fell by 1.68%, and the derivatives volume plunged by 64.37%. The Relative Strength Index (RSI) hovered around 38, indicating a bearish sentiment in the short term.
Conclusion
While Shiba Inu’s aggressive token burn strategy and growing adoption within the crypto ecosystem set a bullish backdrop, recent price movements reflect market caution. The increase in holders and continued burning may support future price rallies, but investors should closely monitor the volatile and unpredictable nature of the cryptocurrency market.
