Shiba Inu (SHIB), the well-known meme coin, has once again drawn significant attention within the crypto community due to its recent developments. As reported by Shibburn, a platform that tracks SHIB token burns, the burn rate of Shiba Inu saw a dramatic increase of over 310% on Friday, May 31. This substantial rise in the burn rate has generated market enthusiasm among traders and investors.

Shiba Inu Burn Rate Spikes 300%

The notable increase in SHIB’s burn rate has effectively decreased its market supply, potentially benefiting its tokenomics in the long run. In the last 24 hours alone, the burn rate surged by 310.99%, according to Shibburn data. During this period, a total of 9.74 million SHIB tokens were destroyed in multiple transactions carried out by the community.

Three specific wallet addresses were particularly influential in this dramatic burn rate increase. One of the key contributors was the wallet address 0xa9d1…, which moved 4.91 million SHIB to a dead wallet through two significant transactions conducted a hours apart. The holder initially burned 2 million SHIB coins. Thereafter, they shifted 2.91 million SHIB tokens to a dead wallet.

Additionally, another wallet address, 0xc8d…, transferred 1.5 million SHIB tokens to a dead wallet a few minutes prior to the time of reporting. These large transactions have been crucial in driving the recent surge in Shiba Inu’s burn rate.

Moreover, another community wallet, 0x608…, sent 1.04 million SHIB tokens to a dead wallet in the last 24 hours, further boosting the burn rate. Consequently, the total amount of SHIB tokens burned has reached an impressive 410.72 trillion. The reduction in the supply of SHIB is viewed as a potential factor that could enhance the value of the token.

In economic terms, a decrease in supply with consistent or increasing demand typically results in price appreciation, and this principle applies to cryptocurrencies as well. This development has injected a wave of optimism into the Shiba Inu community, with many traders and investors keenly watching the progress of the meme coin.

Also Read: Shiba Inu Coin: Whale Bags 445 Bln SHIB At $0.000027, Price Recovery Ahead?

Will SHIB Price Rebound?

The price of Shiba Inu had earlier managed to break past the crucial resistance level of $0.000025. Moreover, it is sustaining above that level despite the bearish tuen. At press time, the SHIB price plunged by 7.41% to $0.00002572 on Friday. Additionally, the second-largest meme cryptocurrency boasted a market capitalization of $15.14 billion.

The 24-hour trading volume for SHIB has also seen a notable slump of 40.90%, reaching $1.01 billion. According to a previous report by Coingape, if SHIB continues to trade above this key resistance level, its price could potentially surge to $0.00003 or even $0.00005. Moreover, the shortening supply owing to the surge in Shiba Inu burn rate could aid a rebound.

In the long term, if the bullish momentum persists, SHIB could aim for a rally to $0.0001. However, if the SHIB crypto trajectory succumbs to the current bearish trend, the next crucial support would be at $0.000024. Meanwhile, SHIB futures open interest has plummeted by 9.99% to $106.59 million, as reported by Coinglass.

Moreover, amid the continued declines, long positions initiated liquidations amounting to a whopping $1.20 million, which could negatively impact the SHIB price. On the other hand, shorts made up only $91,760 worth of liquidations, which isn’t enough to mitigate the impact of long liquidations.

Also Read: Shiba Inu’s Shibarium Achieves Major Feat, Curtails Ethereum Bridge Time

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