The Shiba Inu burn tracker, Shibburn has revealed a staggering spike of 11,000% in burn rate as the memecoin price took a dip and currently battles for a rebound. Thus far, a massive 21,556,546 SHIB has been burnt in the last 24 hours in order to keep circulation tight.
Shiba Inu Internal Mechanisms at Work
Notably, in the past few hours, another 120,888 Shiba Inu was transferred out of the circulating supply into a dead wallet after the massive 21,556,546 were removed in the past 24 hours.
HOURLY SHIB UPDATE$SHIB Price: $0.00002383 (1hr 0.57% ▲ | 24hr -4.37% ▼ )
Market Cap: $14,039,786,500 (-4.43% ▼)
Total Supply: 589,273,487,573,641
TOKENS BURNT
Past hour: 120,888 (1 transaction)
Past 24Hrs: 21,556,546 (11052.67% ▲)
Past 7 Days: 41,760,542 (-8.87% ▼)
— Shibburn (@shibburn) June 4, 2024
This burn mechanism is Shiba Inu’s internal control mechanism of stemming price crashes to stabilize investor confidence and mitigate further depreciation.
The overall goal of the burn is to make the token’s availability scarce so as to drive up its market value. The drastic action affected by the Shiba Inu ecosystem has already burnt 410,726,512,426,358 from initial supply with 583,157,221,848,878 still circulating in supply.
The spike in burn rate comes just days after Shiba Inu’s legacy partner, KNINE burnt 410 million KNINE tokens to celebrate and honor Vitalik Buterin, Ethereum founder. The act was to mark the third anniversary of his historic burn of 410 trillion tokens out of the 500 trillion gifted to him in 2021.
Strategic Burns and Market Outlook
Specifically, the burn activity rate skyrocketed after Shiba Inu sprung surprises with its price metric. As reported by Crypto-Vanguard, SHIB’s price plummeted sharply below a critical support level of 50 EMA with little hope of immediate recovery. This has resulted in massive selling volume which placed the memecoin in a risky market position.
Market watchers are not entirely shocked by the development of the Shiba Inu market performance as historical trends reveal similar occurrences with the token. However, many analysts believe there will be a rebound soon.
Despite the low price and high burn rate, the price might rally as more demand for the memecoin surge from potential donors to Donald Trump, the Republican Presidential candidate in this year’s upcoming U.S. election.
At the time of writing, SHIB is changing hands for $0.00002401, down by 5.16% in 24 hours.
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