Shiba Inu's Burn Rate and Price Surge
The popular meme coin, Shiba Inu, often nicknamed the 'Dogecoin killer', has captured the attention of many in the cryptocurrency world. On Friday, the burn rate of Shiba Inu (SHIB) soared by an astonishing 33,000%. This dramatic increase has led to a surge in the coin's price, which climbed over 20% in just 24 hours. This wave of optimism isn't limited to SHIB alone, as other meme coins like Dogecoin (DOGE), Pepe coin (PEPE), and dogwifhat (WIF) have also seen price increases.
According to Shibburn, a service that tracks these burns, Shiba Inu's burn rate jumped by an incredible 33,818% on September 27. In practical terms, this means that 1.88 billion SHIB coins were removed from circulation in the last day alone. Burning coins refers to the process of permanently removing them from circulation, decreasing the total supply, which can increase the coin's value.
Impact on Supply and Price
As a result of these burns, the total supply of Shiba Inu coins has been reduced to 589.26 trillion SHIB. This reduction in supply, especially driven by a single address moving 1.87 billion SHIB to a burn address, has contributed to the heightened value of the coin. The burn mechanism plays a crucial role in driving up demand and price by making the coin scarcer.
By the last update, the price of SHIB had risen nearly 21% in a single day, reaching $0.00001932. The trading volume for Shiba Inu also saw a significant increase, climbing by 223% to over $1.4 billion. Such a rise in both price and volume is a strong indicator of positive market sentiment.
Broader Meme Coin Market Trend
The surge in SHIB's price aligns with a broader upward trend in the meme coin sector. Alongside Shiba Inu, Pepe coin saw an 18% increase, reaching $0.00001022, while Dogecoin rose 11% to $0.1233. This trend suggests a general bullish sentiment towards meme coins at the moment, with Shiba Inu leading the pack.
On-Chain Activity and Market Statistics
A report from CoinGape Media highlighted increased on-chain activity for Shiba Inu, including higher trading volumes and whale transactions. Whales are large investors who can significantly influence the market. These activities have added to the positive outlook for SHIB.
According to Coinglass, Shiba Inu's futures open interest increased by 55% to $65.14 million, with the derivatives market volume skyrocketing by 338% to $679.77 million. These statistics suggest that the token is currently on an upward trajectory, further supported by today's price action.
