Shiba Inu Burn Rate Skyrockets by 254,000% but There’s Warning

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As an analyst with over two decades of experience in the crypto market, I’ve seen my fair share of bull runs and bear markets. The recent surge in Shiba Inu (SHIB) token burns has caught my attention, but it’s not enough to blindly jump into the bandwagon.

The rate at which Shiba Inu tokens (SHIB) are being burned skyrocketed by an astonishing 254,000% within the past 24 hours, resulting in the removal of approximately 5.64 billion SHIB from circulation. This significant decrease in supply has sparked much discussion and speculation among investors regarding a possible increase in SHIB’s price, as per Shibburn – a platform monitoring token burns.

Over time, more tokens being destroyed leads to a decrease in the available supply on the market, which could potentially raise the token’s worth. Investors have been particularly attentive to the significant surge in burn rates that occurred in October, with SHIB experiencing an impressive 158% increase in this regard. In total, approximately 6.13 billion tokens were taken out of circulation during this period.

The largest single-day token destruction was orchestrated by an account known as “0xbb3…9d8a1”, which eliminated a staggering 5.58 billion SHIB tokens. This latest round of burning brings the total number of SHIB tokens destroyed since launch to an astounding 410,730,000,000,000, significantly decreasing the current supply to approximately 583,590,000,000. Despite this increased rate of burning, the price of SHIB continues to experience downward pressure, with recent trades dipping by more than 7% to $0.00001729.

Currently, the data for Shiba Inu futures indicates a somewhat cautious market sentiment, as the open interest has decreased by 12%, settling at approximately $46.76 million.

Warning amid Burning Frenzy

Amidst the frenzy, Shiba Inu security advocate Susbarium, an X account known for cautioning the community on project safety, has issued a critical advisory. According to Susbarium, investors should exercise caution, particularly around token burns that may be strategically implemented to draw attention.

While he clarified that these burns are not necessarily scams, he urged the community to conduct comprehensive research before making investment decisions. He highlighted key areas of focus, including token allocation, project goals, and tokenomics, as essential points for investors to review.

In response to the warning, Shib’s main developer, Kaal Dhairya, shared a post from Susbarium. He further urged Shiba Inu token holders to think carefully and not let the excitement caused by token burns influence their decisions excessively.

Bullish Forecasts for Q4 2024

Regardless of its recent decline, certain Shiba Inu analysts are optimistic about the asset’s potential increase in the next few months, with estimates suggesting that SHIB could potentially reach a value of $0.000081. The upcoming US presidential election is fueling this optimism, as many experts predict an upswing in altcoins during the last quarter of the year.

At the moment, Shiba Inu stands as the second largest meme coin following Dogecoin, with a market capitalization of approximately $10.19 billion. This substantial positioning has been established after Dogecoin, represented by DOGE at $0.16. Over the last 24 hours, it exhibited a volatility of 7.7%. Its current market cap is $23.23 billion, with a 24-hour trading volume of $2.37 billion.

Lucy, who serves as the marketing head for Shiba Inu, has unveiled plans for an upcoming update primarily targeting the Shiboshis Non-Fungible Tokens (NFTs) within the Shibarium blockchain network.

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2024-11-01 12:57