Shiba Inu (SHIB) Burn Rate Soars by 459%, But Fails to Push Its Price Upward

Crypto analysts and enthusiasts  have  come out blazing to share developing news regarding SHIB.  Innovatekmobile shared on Twitter, that

Shiba Inu has been in the red since 30th May, recording a 41% decline till 21st June. The sudden decline after hitting a record high of $0.0004558 on 5th May has grabbed the attention of several crypto players.

  

Crypto analysts and enthusiasts have come out quickly to share breaking news regarding SHIB.

Innovatekmobile shared on X, that

“Dogecoin killer Shiba Inu’s burn rate soars by 459%, large transactions witness a twofold jump. However, the deflationary pressure failed to push its prices upward”.

He stated that even though there have been high transactions, SHIB prices are continuing to decline.

Crypto Crown shared similar insights on X, stating that,

“Shiba Inu’s burn rate skyrockets by 459%, torching 33.29 million tokens. Despite the hype, SHIB/USD fails to rally”.

Holders burned over 33.29 million of SHIB tokens in circulation, as per Shibburn.

In financial markets, particularly cryptocurrency, the burn rate indicates a large quantity of tokens are being sent to an unusable wallet, a move typically designed to reduce supply by removing it from circulation and increasing prices through heightened demand due to scarcity.

How did SHIB fare?

Despite attempts to increase demand or generate a positive impact, AMBCrypto’s analysis showed that the deflationary pressure did not have a positive effect on prices.

At press time, SHIB was trading at $0.00001799 and saw a 3.19% decline in 24 hours.

Source: Tradingview

Furthermore, AMBCrypto’s analysis revealed that SHIB has declined by 30% this month, with a 29% decline in the last 330 days. Declining prices are a result of excessive selling pressure, leaving the market to battle an upswing.

 

AMBCrypto analysis of data from Coinglass showed that the massive burn had no effect on market sentiment. At press time, SHIB’s weighted funding rate was -0.0015%, indicating that investors were closing their positions without opening new ones.

Source: Coinglass

Moreover, Data from Santiment showed declining exchange outflow. Low exchange outflow suggests that investors are preparing to sell their assets, leading to higher selling pressure and lower prices.

Source: Santiment

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Recent burn implications

The surge in burn rates comes amid increased selling pressure and lower prices.

Selling pressure rises because many tokens in circulation are ready for trade. At press time, SHIB prices were still declining, hence higher burn rates failed to achieve their intended goal, leaving whales with gains from the rising selling pressure.

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

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