Popular memecoin Shiba Inu SHIB/USD witnessed a sharp spike in its burn rate over the last 24 hours. However, the deflationary pressure failed to push its price upward.
What Happened: A whopping 33.29 million SHIB tokens were kicked out of circulation, according to the official burn tracker, Shibburn, representing a 459% jump.
Burning happens when a cryptocurrency token is intentionally sent to an unusable wallet address to remove it from circulation permanently. This is done to create scarcity and boost its demand and market value.
As of this writing, more than 410.72 trillion SHIB tokens have been burned.
Price Action: That said, the deflationary pressure wasn't enough to give a positive impetus to the price. At the time of writing, SHIB was exchanging hands at $0.00001799, following a 1.38% decline in the last 24 hours, according to data from Benzinga Pro.
The meme token has endured considerable selling pressure over the past month, witnessing a 30% decline in its price.
See Also: Is The ‘Meme Coin Super Cycle’ Over? Trader Outlines Pros And Cons
Why It Matters: The spike in burn rate comes amid a twofold jump in large transactions trading volume, according to IntoTheBlock. Large transactions here refer to transactions worth over $100,000, also interpreted as whale transactions.
The high whale activity, combined with a drop in price, signaled that large investors were locking in gains. As of this writing, the majority of SHIB holders were in profit.
Photo Courtesy: Shutterstock.com
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