Shiba Inu Burn Rate Soars By 5,000%, Here’s Why

The Shiba Inu burn initiative begins the week with a positive sentiment as the project has witnessed a significant increase in its token burn rate over the last 24 hours.

Shiba Inu Burn Rate Sees Notable Uptick

On Monday, December 25, over a 5,000% increase in the last 24 hours has been observed in the Shiba Inu burn rate. According to data from Shibburn – the platform that tracks SHIB token burns, the burn rate recorded a substantial 5,043% increase.

The tracker reveals that over 53.13 million SHIB tokens have been burn over the past 24 hours. The surge in burn rate was due to two substantial transactions that consisted of over 20,000,000 SHIB each.

Data from Shibburn shows that the address 0x6081258689a75d2…887239fe80 sent a total of 20,000,000 Shiba Inu tokens to the SHIB burn wallet. Meanwhile, the second transaction which was carried out by the same address saw about 25,000,000 SHIB sent to the burn wallet.

The Shiba Inu burn rate has been witnessing significant surges over the past few days. The rise in burn rate appears to have generated a wave of speculative excitement throughout the cryptocurrency market.

Despite the increase in burn rate, the Shiba Inu price is currently experiencing a bearish price action. The token is currently down by 1% in the last 24 hours, according to CoinMarketCap.

The recent rise in burn rate coincides with a massive whale transaction reported by on-chain tracker Whale Alert. The on-chain tracker revealed that the transaction saw a whopping 4.25 trillion SHIB being transferred to an unknown wallet.

Whale Alert reported that the wallet address identified as 0x3ce6bed2…87d896c59f sent the aforementioned SHIB to the unknown wallet address 0x9c570088…a22fd8b51b. Another aspect to identify is the low gas fee used to initiate this huge transaction, which was less than $3.

The Project’s Team Made Another Massive Burn

On Friday, December 22, a report revealed that the Shiba Inu team burned a massive 8.47 billion SHIB. Currently, the total number of SHIBs burned by the team has reached a whopping 33.8 billion SHIBs.

It is worth noting that the team had previously burned another 8 billion SHIB hours before on the same day.

Earlier that day, the team sent approximately 8,533,564,693 SHIB valued at $90,285 as of that time, to a dead wallet. The total number of SHIB tokens burned by the team that day was approximately 17 billion.

The most recent burn marks the fourth time this month alone that the crew has carried out a burn this size. The overall supply of SHIB is beginning to feel the weight of these systematic burns. 

This has also been confirmed by Lucie, the marketing head and part of the project’s team, on X (formerly Twitter). The most recent burn was shared by Lucie in her post, highlighting that it was the fourth instance of the procedure. 

Shiba Inu is currently trading at $0.000010, with its trading volume also declining by over 30% to approximately $184.65 million. Meanwhile, its market cap is also down by 1% to $6 billion as of the time of writing.

Featured image by iStock, chart by Tradingview.com

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.