Dog-themed cryptocurrency Shiba Inu (SHIB)’s community is seeing a surge in burn rate, which has skyrocketed by an astounding 3,894%. This significant increase has led to millions of SHIB tokens being permanently removed from circulation.
Token burning is a process where a certain amount of cryptocurrency is burned to reduce its overall supply. This is typically done by sending the tokens to a “burn” address, a wallet from which they can never be retrieved. The primary goal of burning tokens is to create scarcity, which can potentially increase the value of the remaining tokens.
In the last 24 hours, Shiba Inu has seen a significant uptick in the burn rate, with millions of tokens being torched.
According to Shibburn X’s account, in the past 24 hours, a total of 4,829,147 SHIB tokens have been burned in seven transactions. This caused a 3,894% increase in the burn rate.
In the past 24 hours, there have been a total of 4,829,147 $SHIB tokens burned and 7 transactions. Visit https://t.co/t0eRMnyZel to view the overall total of #SHIB tokens burned, circulating supply, and more. pic.twitter.com/p2G3eDcTN3
— Shibburn (@shibburn) June 6, 2024
The surge in SHIB burns coincides with a sudden rise in whale interest for SHIB, with the number of large transactions involving SHIB doubling this week compared to the averages seen earlier in 2024.
According to Santiment, Shiba Inu’s recent surge appears to have been triggered by a spike in whale interest. Santiment noted that the amount of $100,000 transactions on the Shiba Inu network has more than doubled this week compared to usual 2024 averages, signaling accumulation.
As reported, Shiba Inu surged past the daily SMA 50 at $0.00002471, following a sharp rebound from intraday lows of $0.00002284 on June 4. Shiba Inu extended its rebound to highs of $0.00002625 in today’s trading session before running into resistance.
At the time of writing, SHIB was down 1.5% in the last 24 hours to $0.00002562, albeit higher by 7% in the last seven days and up 218% yearly.
According to IntoTheBlock data, the large transaction volume for SHIB has risen 223%, with $435.66 million transacted in large transactions of more than $100,000. This metric provides an estimate of the total amount transacted by whales and institutional players on a given day. Spikes in Large Transactions Volume point to high activity among institutional players either buying or selling.
