Shiba Inu (SHIB) Burn Rate Spikes 459%, But Price Fails to Respond

Popular memecoin Shiba Inu SHIB/USD witnessed a sharp spike in its burn rate over the last 24 hours. However, the deflationary pressure failed to push its price upward.

Popular memecoin Shiba Inu (CRYPTO: SHIB) witnessed a sharp spike in its burn rate over the last 24 hours, although the deflationary pressure failed to push its price upward.

What Happened: A massive 33.29 million SHIB tokens were burned out of circulation, according to official burn tracker Shibburn, marking a 459% jump.

Burning occurs when a cryptocurrency token is deliberately sent to an unusable wallet address to remove it from circulation permanently. This is done to create scarcity and boost its demand and market value.

As of now, over 410.72 trillion SHIB tokens have been burned.

Price Action: However, the deflationary pressure wasn't sufficient to provide a positive impetus to the price. At the time of writing, SHIB was trading at $0.00001799, showing a 1.38% decrease in the last 24 hours, according to data from Benzinga Pro.

The meme token has faced significant selling pressure over the past month, witnessing a 30% decline in its price.

See Also: Is The ‘Meme Coin Super Cycle’ Over? Trader Outlines Pros And Cons

What It Means: The spike in burn rate comes as the large transactions trading volume also noted a twofold increase, according to IntoTheBlock. Large transactions here refer to transactions over $100,000, also interpreted as whale transactions.

The high whale activity, coupled with a drop in price, indicated that large investors were locking in gains. As of now, the majority of SHIB holders were in profit.

Photo Courtesy: Shutterstock.com

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News source：https://www.kdj.com/cryptocurrencies-news/articles/shiba-inu-shib-burn-rate-spikes-price-fails-respond.html

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