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Shiba Inu Massive Token Burn Sparks $0.001 SHIB Price Dream: Catalyst Could Trigger Explosion ⋆ ZyCrypto
Dog-themed memecoin on June 25th Shiba Inu (SHIB) witnessed a significant increase in the rate of intraday token consumption, triggering a spike in transactions, according to data from IntoTheBlock. The blockchain analytics firm attributed this double burn rate increase to large transactions worth over $100,000 conducted by whale traders, even as the SHIB Army continues to bank on the $0.001 SHIB price dream.
Additionally, insights from Shiba Inu’s official burn tracker, Shibburn, show that 37.23 million SHIB tokens have been removed from circulation, reflecting a 459% increase in burn rate. As of this writing, over 410 trillion SHIB tokens have been removed from circulation. Burning means permanently removing cryptocurrency tokens from circulation to create scarcity, increasing demand and market value.
However, the deflationary pressure on SHIB failed to trigger a price rally as SHIB traded at $0.00001799 following the token burnout. The increase in activity among large investors, known as “whales,” coupled with the simultaneous decline in the price of SHIB, indicates that these large players are selling off their holdings to secure profits.
This is usually seen as a signal that whales believe the current price is a good time to cash out, perhaps because they anticipate future price drops or want to make profits.
Recent volatility in the Memecoin market amid Mt. Gox clearing news and broader market decline
Over the past month, Shiba Inu has seen significant downward pressure, declining 30% in value. This downward trend follows the decline of the broader cryptocurrency market. On Monday in June, the memecoin sector saw a 7% decline, resulting in a drop in asset prices in the category.
The most popular meme coins, such as DOGE, SHIB, FLOKI, and BRETT, have seen price drops, including small-cap tokens such as ANDY and MUMU. Analysts believe this decline was triggered by news that compensation for Mt. Gox creditors will begin in July.
In today’s trading session, meme coins recorded price gains, with green candles flooding the sector. Dogecoin, the largest meme coin by market capitalization, rose 1.69% in the past 24 hours, trading at $0.1235.
Meanwhile, Shiba Inu, the second largest meme coin by market cap, is trading at $0.00001733, reflecting a 3.06% intraday rally.