SHIB price uptrend leads to 6,000% surge in Shiba Inu burn.

The recent increase in the number of Shiba Inu tokens being burned has once again impacted the SHIB market. Over the course of 24 hours, more than 341 million SHIB tokens were destroyed, causing the burn rate to increase by approximately 6,936%. This development has caused the price of the popular meme coin to rise as it continues on an upward trajectory.

The Shiba Inu community, affectionately known as the SHIB Army, has been consistent in its efforts to burn tokens, which has significantly influenced the dynamics of the SHIB market. The burning process involves sending tokens to an unusable address, effectively taking them out of circulation, reducing supply and increasing scarcity.

A Record Token Burn

Among the transactions contributing to this burn rate, address “0xcf6” took the lead, accounting for nearly 252.8 million SHIB tokens dispatched to a dead wallet, as per data from etherscan.io. The acceleration of the token burn represents a community effort, with 341 million SHIB tokens destroyed in a mere five transactions within a single day.

This amount nearly equals 377 million SHIB tokens burned the previous week. Given supply and demand dynamics, this significant reduction in circulating SHIB tokens contributes to a higher token value in the long run.

Notably, the impact was swiftly observed in the price of Shiba Inu, which recorded a gain of 5.6% in the past 24 hours and nearly 20% over the past seven days.

The surge in token burning and its subsequent positive impact on the price of Shiba Inu highlight the power and commitment of the community to their chosen cryptocurrency. Although some critics dismiss meme coins like SHIB as lacking intrinsic value, the dedication of the SHIB Army and the market dynamics seem to drive the price upward.

Shiba Inu Continues Uptrend

The value of the SHIB token has increased in recent days, with the meme coin breaking through multiple resistance levels. SHIB is currently trading at $0.00000791, which is up 19.6% over the past week. The token currently has a market capitalization of $4.6 billion, making it the 16th largest cryptocurrency by market cap.

The daily trading volume of SHIB has also significantly increased in the past 7 days. Shiba Inu volume has surged from as low as $98 million last Thursday to as high as $300 million in the past 24 hours.

The upward trend in the SHIB token price can be attributed to the overall bullish sentiment in the cryptocurrency market. Bitcoin, the leading cryptocurrency by market cap, has been on an upward trend, positively impacting the prices of other cryptocurrencies, including SHIB.

It is worth noting that the recent surge in token burning highlights an essential aspect of tokenomics, which is the study of economic systems related to cryptocurrency tokens. With fewer SHIB tokens available, the token’s scarcity increases, theoretically increasing its value over time.

Featured image from Shutterstock, Chart from TradingView

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