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Shiba Inu (SHIB), the dog-themed cryptocurrency, has seen a substantial increase in its burn rate, increasing 489%.
According to the Shibburn X account, 19,345,086 SHIB tokens were burned in the last 24 hours, translating into a 489.87% surge in the SHIB burn rate.
The significant jump in the burn rate comes amid a period of price volatility for SHIB, with the cryptocurrency experiencing a dip in its price. While price dips are not uncommon on the cryptocurrency market, the simultaneous increase in the burn rate might suggest a concerted effort by the SHIB community to bolster the token's scarcity and potentially stabilize its price.
Typically, a reduced supply with steady or increasing demand would lead to a price increase. However, market dynamics can be influenced by a myriad of factors, including investor sentiment, market trends and broader economic conditions.
At the time of writing, SHIB was down 8.78% in the last 24 hours to $0.000021, mirroring the broader crypto market sell-off, which saw Bitcoin fall below the $64,000 level. The majority of cryptocurrencies are also nursing significant losses.
The crypto market is currently under selling pressure, as dwindling chances of Fed rate reduction and rising bond rates appear to undercut the bullish case for cryptocurrencies and stocks.
Shiba Inu price faces critical test
Shiba Inu (SHIB) is currently at a critical price juncture following its recent dip. According to IntoTheBlock data, in the range of $0.000020 to $0.000023, 46.11 trillion SHIB were bought by 44,710 addresses at an average price of 0.000022.
This is more than a price range; it might be a litmus test for the coin's resilience. Whether SHIB breaks through or holds steady, the outcome will be a telling hint of what to expect from the dog-themed token.
As SHIB approaches the lower end of this range, the cryptocurrency market waits with bated breath to see if it will hold at this price. In case of further declines, SHIB has relatively minimal support in the $0.000019 to $0.000020 area, where 3.77 trillion SHIB were bought by 5,420 addresses.
In the case of a comeback, SHIB will confront its next barrier between $0.000023 and $0.000025, where 41,690 addresses hold 37.84 trillion SHIB.
Alex Dovbnya
Gamza Khanzadaev
