Why Did The Shiba Inu Burn Rate Spike 5,569% In One Day?

Shiba Inu’s burn rate has surged 5,569% in the past 24 hours, continuing a positive trend that began last week. However, this burn rate spike comes at a time when the cryptocurrency market is struggling, causing SHIB’s price to fall significantly, which raises the question of what is driving the burn rate.

Shiba Inu’s burn rate increased by 5,549%

Shiba Inu’s burn rate spike comes at an opportune time, as positive sentiment among investors rises again. data According to Shibburn, a Shibburn-tracking website, the total number of SHIB tokens burned in the past 24 hours reached approximately 12 million, which represents a 5,549% increase compared to the previous day’s figures.

Interestingly, this spike is far from the meme coin’s biggest burn rate this week: Data from Burn Tracker on Monday showed a 202,974% one-day surge as investors moved more than 12 million tokens to burn addresses within 24 hours.

As for transactions that carried out burns, at the time of writing, only six transactions were recorded in the final day. The major burn occurred from a single wallet identified as “0x60812..39fe80.” This website carried out over 90% of the total burn after sending approximately 10.1 million coins to the burn wallet in two separate transactions.

The sharp increase in the 24-hour burn rate this week also contributes to a larger weekly burn rate increase. According to Shibburn data, just over 402.7 million tokens were burned in the seven days, which represents a 1,098.7% increase in the burn rate in one week.

SHIB surges despite price drop

Typically, spikes in Shiba Inu’s burn rate occur during times of positive sentiment, when investors are more willing to send coins to the burn address to keep the price rising. However, this time, the burn rate spike occurred at a time when the token’s price was falling.

According to CoinMarketCap data: show,Shiba Inu’s price has fallen by 9.18% in the past day alone, which contrasts sharply with the 5,549% increase in burn rate. Similarly, on the weekly chart, Memecoin’s price has fallen by about 18% while its burn rate has increased by 1,098%.

However, during this time, SHIB’s daily trading volume increased by 128% to $594 million, although the falling price suggests this volume was driven by sellers rather than buyers.

Shiba Inu price chart on Tradingview.com
SHIB Price Plummets | Source: SHIBUSDT on Tradingview.com

Featured image created by Dall.E, chart taken from Tradingview.com

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