Over the last two months, the Shiba Inu (SHIB) cryptocurrency has faced a consistent decline in its price. Falling below the critical $0.00001 mark on May 1, many investors were getting concerned. However, a recent massive SHIB transaction to a dead wallet has given the meme coin a new lease on life, making its price surge and bringing it back into the green zone.
Before this development, SHIB had experienced a 12% drop in value in 60 days. But with a 1.25% increase in the last 24 hours, its price now stands at roughly $0.000010 according to data from crypto.news. The sudden increase in value came as a result of a huge spike in the asset’s burn rate, which refers to the number of tokens permanently removed from circulation.
In total, over 2.25 billion SHIB tokens were sent to dead wallets recently, marking an incredible 30,940% spike in the burn rate as per SHIB BURN data. A majority of these tokens were from a single 2 billion SHIB transaction worth about $19,900 at the time. The wallet that initiated this transaction now holds a mere 0.808 ETH coins, equivalent to $1,500.
Although some skeptics might argue that the recent rise in SHIB’s price could be due to external factors affecting the whole crypto market, and not just an isolated occurrence, one cannot deny the impact of the massive burn rate spike on the meme coin’s performance.
Indeed, the global crypto market capitalization has experienced a notable increase in the past 24 hours. CoinMarketCap (CMC) data shows that the digital currency market cap has risen by around $20 billion, now standing at approximately $1.8 trillion.
As a result, the Shiba Inu coin has managed to claw back some lost ground following its continuous price decline. While some may still hold a degree of skepticism towards the meme-inspired token, others see this recent development as a testament to the coin’s resilience and adaptability in a highly fluctuating market. In conclusion, the debate surrounding the impact of burn rates on cryptocurrencies such as SHIB will continue to pique the interest of crypto enthusiasts and investors alike.