Shiba Inu ($SHIB) Token Burn Rate Soars 12,000% Amid Market Downturn

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As a long-term crypto investor with experience in following Shiba Inu ($SHIB), I find the recent surge in token burns intriguing. The 12,000% increase in the burn rate is impressive and aligns with the project’s goal of reducing the overall supply to potentially boost prices. However, it’s disheartening that this significant event didn’t translate into price growth during a cryptocurrency market downturn.

As a researcher studying the Shiba Inu ($SHIB) cryptocurrency, I’ve noticed an intriguing development: the token burning rate has surged by an astounding 12,000%, reaching 11.9 million tokens burned per transaction. This surge in token burning comes at a time when the price of $SHIB and the wider cryptocurrency market are experiencing a downturn.

Based on information from Shibburn, a site that monitors SHIB token burns, there was a surge of over 12,000% in burns within the past 24 hours. The largest single transaction saw approximately 5.1 million tokens being transferred to an address with no balance, thereby eliminating these tokens from circulation.

As an analyst, I’ve examined the data from the past 24 hours, and I can report that a grand total of 11,928,742 $SHIB tokens have been irreversibly removed from circulation through 6 separate transactions. For real-time insights on the current state of the $SHIB token supply, including the overall amount burned and circulating figures, feel free to check out this link.— Shibburn (@shibburn) June 18, 2024

After the introduction of the cryptocurrency inspired by memes, approximately 410.63 trillion SHIB tokens have been eliminated from a total issuance of one quadrillion. The burning mechanism aims to decrease the number of circulating SHIB tokens, thereby potentially causing price increases if demand remains constant or escalates. This approach incorporates both automated and manual token burns.

Despite the rapid increase in the burn rate of SHIB, the coin’s price didn’t keep up the pace. In fact, I observed a decline of around 11% in SHIB’s value during the recent cryptocurrency market slump. Meanwhile, Bitcoin and Ethereum experienced losses of 0.6% and 2.5%, respectively, over the same 24-hour period.

According to CryptoGlobe’s report, the meme-driven cryptocurrency might experience substantial selling pressure due to large whale transactions. Over 4 trillion tokens have been transferred to Nasdaq-listed crypto exchange Coinbase, potentially indicating an impending sell-off.

Significantly, OnchainDataNerd, a well-known cryptocurrency analyst, posted data on X (previously Twitter) revealing that ten distinct wallets transferred approximately 4.29 trillion SHIB tokens, equivalent to around $100 million, into Coinbase. These wallets had amassed these tokens during two distinct timeframes: September 2021 and March 2024. The average purchase price for these tokens was $0.000013.

As a researcher studying the cryptocurrency market, I can’t help but notice the significant increase in Shiba Inu’s value, now trading above $0.000017. Should a complete sell-off occur, I estimate that the profits for those holding large quantities of this digital currency could potentially reach into the millions of dollars.

Recently, a significant cryptocurrency investor has been actively buying up large quantities of SHIB, investing millions to eventually amass billions of tokens in this meme-driven cryptocurrency. Following this development, there are impending whispers of potential whale sales.

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2024-06-18 19:50