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SHIB Burn Rate Hits Highs of 500%, Is Price Rally Imminent?
Shiba Inu, the self-proclaimed Dogemoneta killer, has once again made attention in the cryptocurrency landscape, mainly thanks to its optimistic crypto initiatives. Insights from tracker Shibburn revealed that the meme coin’s burn rate increased by more than 500% today, May 20.
This has injected a dose of optimism into the market among cryptocurrency traders and investors who are largely eyeing meme-based crypto. In particular, the Shiba Inu market offering takes a hard hit with such massive burn transactions, regarding which a strengthened tokenomics for SHIB is expected much in the future.
Here is an in-depth report on the current dynamics of the Shiba Inu market.
Shiba Inu Burn lights up hope for the future
The one in Shibburn Insights reveal that the burn rate skyrocketed by 579% in the last 24 hours, following the incineration of 9.83 million tokens in a series of transactions. Of these transactions, address burning transfers from two specific addresses have particularly attracted market attention.
According to the data, the wallet address 0x608125… was registered, moving 3.10 million SHIB to a dead wallet via numerous transactions in the last 24 hours. Additionally, address 0xa9d… was recorded as having transferred 4.69 million SHIB to a dead wallet in the last day. Transactions from these addresses appear to be responsible for the lion’s share of contributions to the spike in the SHIB consumption rate.
Meanwhile, it is worth noting that despite the significant amount of tokens destroyed, the meme coin was trading in the red today.
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The price of Shiba Inu plummets
At the time of writing, The price of Shiba Inu has shown signs of pullback, down 4.35% over the past 24 hours to $0.00002389. However, the weekly charts for the self-proclaimed Digecoin killer show a rise of 9.80%, underscoring the increased volatility witnessed recently by Shiba Inu. Furthermore, its 24-hour lows and highs are $0.00002359 and $0.00002507, respectively.
Data from Coinglass further rationalized investors’ mixed feelings in the market, as derivatives volume increased by 21.61%, but SHIB’s OI fell by 8.13%. This signaled an increase in trading activity for Shiba Inu, followed by a reduced inflow of money into the market, which could potentially drive SHIB’s recent market volatility.
Nonetheless, the RSI (Relative Strength Index) stood at around 48, signaling that the asset is neither overbought nor oversold. This has added a layer of intrigue to future Shiba Inu price movements.
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