Amid the recent downtrend, the destruction rate of Shiba Inu Coin has surged by 3010% today, so SHIB prices may see a rebound due to the reduction in supply, but uncertainty remains.
The token burn rate of the Shiba Inu (SHIB) meme coin has increased significantly during the current bearish trend. Data from Shibburn, a platform that monitors SHIB token burns, shows that the SHIB token burn rate spiked by nearly 3,010% on Wednesday, June 12. Additionally, the community burned over 232 million SHIB tokens.
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The destruction rate of Shiba Inu coins has soared
The significant increase in token burns occurred during a period of falling Shiba Inu token prices. By reducing the circulating supply of SHIB, the burn rate has the potential to increase the value of the token. According to Shibburn data, the SHIB token burn rate has surged by a staggering 3010.53% over the past day.
During this period, the Shiba Inu community destroyed a total of 232.64 million SHIB tokens through multiple transactions. In addition, as the SHIB destruction rate soared, one wallet address stood out. The wallet address 0xd9a… transferred 225.63 million SHIB tokens to a dead wallet through a transaction, destroying as much as 225.63 million.
In addition, two other wallets also made significant contributions, destroying more than 1 million tokens through various transactions. The second wallet 0xa9d… transferred 3.18 million SHIB tokens to a dead wallet through two transactions. In addition, another address 0xc58… transferred 1.69 million SHIB to a dead wallet.
Other Shiba Inu community members also contributed, conducting several smaller token burns, further increasing the burn rate. As a result, the total number of SHIB tokens burned has reached a staggering 410.72 trillion.
Potential impact on SHIB prices
As of now, SHIB price has fallen by 2.36% to $0.00002196 on Wednesday. The market capitalization of the Shiba Inu meme token is $12.96 billion. In contrast, SHIB’s 24-hour trading volume has increased by 30.12% to $816.98 million. This surge may be due to a surge in selling as $1.34 million in long liquidations occurred in the past 24 hours.
Currently, the price of Shiba Inu is well below the critical resistance point of $0.000025. According to a previous report by Coingape, crossing this threshold could allow the SHIB price to rise to $0.00003 in the short term. Moreover, if the momentum continues, this upward trend could push the value of Shiba Inu to $0.00005.
Furthermore, maintaining the $0.00005 level could propel the cryptocurrency towards its ambitious target of $0.0001. However, to be fair, SHIB is still far from its all-time high of $0.00008845. Moreover, the current trend remains bearish.
Therefore, SHIB price must recover above $0.000025 to achieve these high-end targets, which is much higher than its all-time high. This recovery could be spurred by the rapid cash burn rate and the anticipation surrounding the Shiba Inu ETF, although nothing is certain.
