What happened?
The burn rate of Shiba Inu (SHIB) tokens surged by 3,465%, with a total of 9.81 million tokens burned in one day, largely from a single large transaction. This drastic increase is part of the Shiba Inu blockchain’s design, which aims to reduce the circulating supply by burning a portion of transaction fees. Even though the one-day burn represents only a small fraction of the 590 trillion tokens in circulation, it suggests significant positions are being taken by investors.
Who does this affect?
This development primarily affects SHIB token holders and potential investors who are eyeing the cryptocurrency for its investment potential. With the burn rate increasing, those holding SHIB could see an impact on the value of their holdings due to a reduced supply. Additionally, traders and speculators looking to capitalize on price movements might be influenced by this news as they anticipate price changes based on market dynamics.
Why does this matter?
The increase in the burn rate could contribute to upward pressure on the SHIB price if the market perceives the reduced supply as a factor that adds to the coin’s scarcity. This dynamic may encourage more trading activity and potentially lead to increased volatility in the market for SHIB. As SHIB approaches key resistance levels, a successful breakout could attract further investment, possibly impacting the broader altcoin market as confidence in meme coins grows.