The Shiba Inu burn initiative has started the week with a positive sentiment as the project experiences a substantial increase in its token burn rate. This surge in burn rate has created excitement within the cryptocurrency market, despite the bearish price action of the Shiba Inu token.
According to data from Shibburn, the platform tracking SHIB token burns, there has been a remarkable 5,043% increase in the burn rate over the past 24 hours. This increase is evident in the burning of over 53.13 million SHIB tokens during this period. The surge in burn rate is attributed to two substantial transactions, each involving over 20,000,000 SHIB tokens.
Coinciding with the rise in burn rate is a massive whale transaction reported by on-chain tracker Whale Alert. The transaction involved the transfer of a staggering 4.25 trillion SHIB tokens to an unknown wallet. The low gas fee of less than $3 used for this transaction is another aspect worth noting.
The Shiba Inu team has recently conducted significant burn initiatives. On Friday, December 22, they burned a massive 8.47 billion SHIB tokens, bringing the total number of burned tokens by the team to 33.8 billion SHIBs. Earlier that same day, the team burned another 8 billion SHIB tokens, resulting in a total of approximately 17 billion SHIB tokens being burnt.
The regularity and scale of the burn initiatives are beginning to impact the overall supply of SHIB tokens. The team’s systematic burns are significantly reducing the supply, which has started to be felt in the market. The overall market sentiment towards this has been confirmed by Lucie, the marketing head of the project, on X (formerly Twitter).
As of the time of writing, the Shiba Inu token is experiencing a bearish price action with a 1% decline in the last 24 hours. The trading volume has also decreased by over 30% to approximately $184.65 million. The market cap of Shiba Inu is down by 1% to $6 billion.
The significant increase in the Shiba Inu burn rate signifies the growing interest in the project. Despite the bearish price action, the regular burn initiatives by the team demonstrate their commitment to reducing the overall supply of SHIB tokens. Investors and market participants should carefully analyze the impact of these burn initiatives before making any investment decisions.