Shiba Inu (SHIB) Burn Rate Surges – What Does It Mean for Investors?

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Introduction

Shiba Inu (SHIB) has seen a significant spike in its burn rate, with over 15 million SHIB tokens permanently removed from circulation. Despite this major burn event, the price of SHIB has dropped 6.4% in the last 24 hours. Could this burning mechanism eventually boost SHIB’s value?

Key Takeaways:

SHIB burn rate surged by 470%, with 15 million tokens destroyed.
Limited price impact despite continued burns.
Whale activity increased, with 1.24 trillion SHIB withdrawn from Kraken.
24-hour trading volume rose by 22%, signaling investor interest.

SHIB Burn Rate Jumps 470% in 24 Hours

The Shiba Inu community has once again contributed to reducing the circulating supply of SHIB by burning 15,104,251 tokens in a single day. The largest burn transaction came from wallet “0x541…f3ce,” which sent 14,089,269 SHIB to an irretrievable address. Another wallet, “0x6d0…e389e,” burned 635,364 SHIB.

image editor output image1225416833 1738929880322451546876517300085 — Source Shibburn

So far, a total of 410.74 trillion SHIB has been burned from the initial supply of 584.28 trillion SHIB, significantly cutting down the available tokens in circulation.

Why Is SHIB Being Burned?

SHIB burns are designed to reduce the circulating supply and potentially increase demand, which could push prices higher over time. However, despite this aggressive burning strategy, the recent burn event failed to boost SHIB’s price, which dropped 6.4% over the past 24 hours.

SHIB Price Drops Despite Massive Burns

Even with a significant reduction in token supply, SHIB’s price remains under pressure. The meme coin is now trading at $0.00001504, marking a weekly drop of 18.9% and a monthly decline of 30.7%. This suggests that the broader bearish market sentiment continues to weigh on SHIB’s performance.

Read more Shiba Inu Struggles with Key Resistance Levels: What Lies Ahead for SHIB?

Whale Activity on the Rise

SHIB’s declining price coincides with increased whale movement. According to U.Today, cryptocurrency exchange Kraken recently saw an outflow of 1.24 trillion SHIB, valued at approximately $20.14 million. Large withdrawals like this can indicate accumulation by major investors, suggesting confidence in SHIB’s long-term potential.

24-Hour Trading Volume Surges 22% – A Positive Sign?

Despite the price decline, SHIB’s 24-hour trading volume surged by 22.05%, reaching $378.8 million. Increased trading volume often signals heightened investor interest, which could lead to price rebounds if market sentiment shifts positively.

Conclusion: Can SHIB Recover Soon?

While SHIB’s burning mechanism continues to reduce supply, its immediate impact on price remains limited. However, the rise in whale activity and growing trading volume could indicate potential price recovery in the near future. For investors, this may be a crucial moment to monitor SHIB’s next moves, especially as the overall crypto market sentiment evolves.

Important Notice: The content presented in this article is intended for informational purposes only and should not be interpreted as financial advice. Coinshibainu.com bears no responsibility for any investment decisions made relying on the information contained herein. It is highly recommended to consult with a qualified expert or financial advisor before making any investment decisions.