- Burn rate of SHIB explodes by 579%, burning 9.83 million tokens.
- SHIB price falls by 3.07% on a day, even with higher burn rate.
With its hopeful cryptographic endeavors, Shiba Inu has once again drawn interest from the crypto community. Data from the burn tracker Shibburn showed that today, May 20, the burn rate of the meme coin increased by more than 500%.
Among the cryptocurrency traders and investors who are closely monitoring the meme-based cryptocurrency, this sharp rise has added a shot of market optimism.
Prospects for the SHIB Market and Tokenomics
Such huge burn transactions damage the market supply of Shiba Inu, which results in stronger tokenomics expected for SHIB.
Since 9.83 million tokens were burned in a string of transactions during the last 24 hours, the burn rate has increased by 579%. The SHIB group is quite interested in and optimistic about this supply decline.
According to Shibburn, the market is especially interested in the transfers from two particular addresses to burn addresses. With multiple transactions in the last 24 hours, the wallet address 0x608125… was noted to have moved 3.10 million SHIB to a dead wallet.
Over the last day, the address 0xa9d… also sent 4.69 million SHIB to a defunct wallet. The transactions involving these addresses seem to be mostly to blame for the increase in the SHIB burn rate.
Price and Market Activity
The meme coin traded in red today, even though a large number of tokens were destroyed. CoinGecko data shows that the price of SHIB at the moment of writing is at $0,00002398, down 3.07% over the previous day. With a 1.10% rise over the last seven days, SHIB nonetheless continues to show a solid position.
Before, ETHNews reported that the SHIB price chart had a golden cross, a bullish indication, when the 20-day EMA crossed above the 50-day EMA. Investors had already been encouraged to be positive by this technical indication.
As futures volume increased 21.61% but SHIB’s open interest (OI) decreased 8.13%, Coinglass data explained divergent investor moods in the market.