In the 24 hours leading up to November 19, Shiba Inu (SHIB) experienced a 6070% jump in its burn rate as over 4 million tokens were burned down. This caused an uptick in the meme coin's price which rallied to reach the $0.00003 mark, registering a 5% growth.
A look into the Shibburn data revealed that 4.8 million SHIB tokens were permanently removed from circulation as the burn rate increased by a whopping 6070%. Such burn transactions are done to control the supply tokens as it reduces the total circulating supply of the digital asset which in this case is the Shiba Inu coin. This spikes the scarcity, making way for an increase in the token’s price.
This burning event on November 19 is one of the largest burns of the Shiba Inu meme coin in recent times. It happened through a wallet address starting with 0x60812 which transferred 2 million SHIB tokens to another wallet where it was burned. Another burning event occurred later when a wallet address 0xf89d7 removed 1.55 million Shiba Inu tokens.
The rest of the tokens burnt were from smaller events of 500,000 tokens burning from the 0x79669 wallet address and a 125,000 SHIB burn from the 0xa9d1e wallet address.
These burning events happened at a time when the meme coin was under a bullish run, showing a double-digit price gain in the last week. The SHIB token displayed remarkable resilience by surging ahead in fluctuating market conditions. It passed important resistance zones to rise to $0.00003. Analysts are forecasting that breaking this barrier means the investors’ interest in Shiba Inu is increasing and the meme coin’s position is strengthening in the crypto market.
The Shiba Inu project has always emphasized improving the utility of its Layer 2 blockchain Shibarium. With these burning events, SHIB has been perfectly in line with its deflationary goals as well as reduced the supply of the token. These moves encourage crypto investors to go for long-term holding positions.
The burning of tokens on November 19 caused the Shiba Inu to surge 5.93% on Tuesday to end up trading at $0.00002591 with the trading volume increasing by 1.79% to touch $1.31 billion As the meme coin goes beyond the $0.000025 resistance level because of the recent surge in burning activity, analysts suggest SHIB will rally to $0.00003.
However, analysts have also warned traders to be vigilant of market conditions and not solely rely on burn activity-related price rallies to understand the demand for the token. Overall the massive increase in the Shiba Inu’s burning rate upholds the project's commitment to value enhancement which in future could result in spikes.
As of November 21, Shiba Inu has gone down 8.17% to trade at $0.00002353 while its trading volume has risen 1.71% in the last 24 hours to be at $1.34 billion and its market cap declined to $13.88 billion.