Shiba Inu Burn Rate Jumps as Over 537M SHIB Set Ablaze

Shiba Inu (SHIB), one of the most well-known memecoins, has significantly increased its burn rate over the past 24 hours. More than 537 million worth of SHIB coins have been taken out of circulation.

This caused the burn rate to jump by 3,484%, a massive increase from the day before. This turn of events has made the SHIB community more hopeful for the token’s future. This came after the SHIB ecosystem improved its decentralized finance (DeFi) toolkit.

Massive Token Burn Fuels Shiba Inu Price Jump 

Burning coins usually helps reduce the total supply, making the remaining coins more valuable. Following this large burn, SHIB’s price increased by 4.12%, trading at $0.000012, and its total market value crossed $7.2 billion.

This price bounce came shortly after SHIB dropped by 10% earlier in the week. This drop was caused mainly by a bigger dip in the crypto market, which reacted to rising tensions between Israel and Iran.

Furthermore, Shibburn tracking platform shows that the recent increase in SHIB’s burn rate continues a trend seen earlier this week. In a notable move, one wallet alone burned over 500 million SHIB in the past 12 hours.

The Shiba Inu community has used token burning to help support long-term value. As SHIB’s price went up, its future open interest rose by over 4%, reaching $141.85 million.

According to Coinglass data, traders are showing more confidence in SHIB’s short-term performance. A rise in open interest usually means more trading activity and a stronger belief in the token’s direction.

This geopolitical tension also shook the entire crypto market. Bitcoin’s price (BTC) dropped 2.8% after the incident, falling from $106,042 to $103,053. However, the flagship crypto seems to be back on a bullish path. According to CoinMarketCap data, it is trading at $105,092 at the time of writing, up 0.27% in the past 24 hours.

SHIB Whale Activity Drops Despite Price Uptick

Even though the token burn and price rise are good signs, data shows that large-scale SHIB holders are pulling back. In the past 24 hours, large transaction volume has dropped 65%.

Wallets with at least $100,000 worth of SHIB have seen a significant slowdown in activity. This points to weakening interest among big investors, possibly due to recent market uncertainty. On June 6, the enormous transaction volume hit 17.63 trillion SHIB. 

However, this has dropped to just 948.59 billion SHIB, showing that many big investors are pulling away. Experts say if larger investors continue to reduce their holdings, it may put downward pressure on the SHIB price. 

Still, if the burn rate remains high and market confidence improves, SHIB could regain strength.