Optimism has swept through the Shiba Inu community as the native cryptocurrency's burn rate witnessed a sharp increase.
According to data from the Shibburn tracker, the SHIB burn rate surged by nearly 570% in the past 24 hours, with four wallets identified as the primary contributors to these burns.
This recent development has reignited bullish sentiment among Shiba Inu enthusiasts, who are closely watching the impact of the rising burn rate. The surge in burns automatically reduces Shiba Inu's market supply, potentially leading to favorable implications for its tokenomics in the future.
In the last 24 hours, the Shiba Inu community burned 12.7 million SHIB tokens, with four wallets playing a crucial role in this process. One address transferred 4.6 million SHIB tokens to a dead wallet, effectively taking them out of circulation.
Another address sent 3.08 million SHIB to a burn address, further reducing the circulating supply.
These transactions coincided with a surge in SHIB prices over the same period. Notable transactions included one transferring 1.04 million SHIB to a dead wallet and another burning 1.01 million SHIB tokens.
With the principles of cryptocurrency tokenomics in mind, a reduced supply combined with steady or increased demand could potentially lead to price appreciation for any asset. With over 410 trillion SHIB already burned, traders and investors are optimistic about the possibility of a memecoin price rally.
SHIB has traded within a narrow range for nearly ten weeks since reaching $0.00004575 on March 5. The recent surge pushed the memecoin above the $0.000025 level, which previously acted as significant resistance. Increased momentum could propel the memecoin higher, with many users eyeing $0.0001 as an initial target in the current bull cycle.
May 2024, Cryptoniteuae