In the midst of a wider cryptocurrency market recovery, the burn rate of Shiba Inu (CRYPTO: SHIB) has seen a dramatic increase of 580%.
What Happened: A significant rise in the burn rate and price of the Shiba Inu token, despite a decrease in volume. Data from blockchain tracking firm Shibburn indicates a 580.28% increase in SHIB’s burn rate over the last day.
This surge coincides with a 4.27% increase in the overall crypto market capitalization. SHIB’s price has also followed this upward trend, rising by 5.89% during the same period.
The SHIB team reportedly burned 16,607,692 SHIB in the last 24 hours, a 590.19% increase from the previous day. This token burning strategy is designed to reduce the circulating supply and create scarcity.
However, despite the daily increase, SHIB’s weekly burn rate has seen a significant decline. The data shows a 57.86% drop compared to the previous week. The sudden jump in the burn rate is speculated to be a move by the SHIB team to restore investor confidence and fuel bullish momentum.
Also Read: Shiba Inu’s Burn Rate Soars, Removing 505 Million Tokens From Circulation
Despite the increase in SHIB’s burn rate and price, its trading volume remains low, which has raised concerns among investors. Data from CoinMarketCap shows a significant slump of 21.54% in SHIB’s trading volume as of April 11.
Why It Matters: The increase in SHIB’s burn rate comes at a time when the cryptocurrency market is experiencing a rebound. This could be a strategic move by the SHIB team to capitalize on the market’s upward trend and stimulate further growth.
However, the decrease in trading volume could be a cause for concern, as it may indicate a lack of investor interest or confidence in the token.
The SHIB team’s decision to increase the burn rate could be an attempt to counteract this and stimulate demand by creating scarcity.
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