Shiba Inu (SHIB), a prominent meme coin, has captured significant attention due to a remarkable surge in its burn rate. According to Shibburn, the platform tracking SHIB token burns, the burn rate skyrocketed by over 310% on Friday, May 31. This surge has sparked enthusiasm among traders and investors in the market.
SHIB Burn Rate Surges: Community-Driven Transactions Propel Tokenomics
The substantial rise in SHIB's burn rate has led to a reduction in its market supply, potentially benefiting its tokenomics in the long term. In the past 24 hours alone, the burn rate surged by 310.99%, resulting in the destruction of 9.74 million SHIB tokens through various community-driven transactions.
Three specific wallet addresses played a pivotal role in driving this surge. Notably, wallet address 0xa9d1… moved 4.91 million SHIB to a dead wallet through significant transactions, contributing to the spike in burn rate. Similarly, addresses 0xc8d… and 0x608… also transferred substantial SHIB amounts to dead wallets, further boosting the burn rate.
SHIB Price Outlook: Supply Reduction Sparks Optimism Amid Support Levels
The reduction in SHIB's supply has generated optimism within the Shiba Inu community, potentially enhancing the token's value. Economic principles suggest that a decrease in supply, coupled with steady or increasing demand, typically leads to price appreciation, a phenomenon applicable to cryptocurrencies.
Despite a recent price dip, SHIB managed to sustain above the crucial resistance level of $0.000025. If this level continues to hold, SHIB's price could potentially surge to $0.00003 or even $0.00005. The surge in burn rate may contribute to this rebound.
In the long term, SHIB could aim for a rally to $0.0001 if bullish momentum persists. However, failure to maintain current support levels could see SHIB testing the crucial support at $0.000024. The futures market indicates a decline in open interest, with long liquidations potentially impacting SHIB's price negatively.
The surge in SHIB's burn rate has injected optimism into the community, potentially setting the stage for a price rebound. Traders and investors are closely monitoring key support and resistance levels to gauge SHIB's future trajectory amidst ongoing market fluctuations.