Shiba Inu (SHIB) has experienced a remarkable 482% surge in its burn rate, coinciding with the Ethereum ETF launch announcement that has captured the broader crypto market’s attention. Although it remains uncertain whether this burn rate increase stems from transfers earlier in the week, the 24-hour jump has reignited hidden sentiments about the meme coin.
Detailed Burn Rate Analysis
According to data from Shibburn, a total of 60,380,203 SHIB tokens were burnt, thereby reducing the total tokens sent to dead wallets. Over the past seven days, the burn rate exhibited some erratic behavior, with 135,026,217 SHIB burnt during this period.
Related article: SHIB Will Rise Despite Recent Setback, Says Marketing Specialist
Notably, at least five different wallet addresses played a significant role in this latest burning round. Each wallet contributed at least 9,999,999 SHIB to dead wallets. As a result, the Shiba Inu ecosystem has now burnt a total of 410,727,706,468,542 SHIB, leaving 583,377,438,955,666 SHIB in circulation.
Burning tokens effectively reduces the asset’s circulation, aiming to create scarcity. This scarcity is theoretically expected to drive up the price. However, the price growth has yet to materialize in the market.
SHIB Price Defies Expectations
Contrary to market expectations, the price of Shiba Inu has been moving in the opposite direction. At the time of writing, SHIB has dropped by 2.68% in 24 hours, bringing its price down to $0.0000172. This decline has further distanced it from its short-term target of $0.00002.
Related article: Shiba Inu Team Issues Urgent Warning Over Crypto.Com Article Flaw
The upcoming launch of the spot Ethereum ETF, set to go live for trading today, may help reverse the negative market sentiment. As a result, Shiba Inu might recover from its losses over the past seven days and the last month. Beyond the ETF hype, improvements in other metrics such as net flows could also contribute to a positive price movement.
While Shiba Inu’s burn rate has surged significantly, its price has not yet reflected the anticipated scarcity-driven growth. The potential impact of the Ethereum ETF launch and other metrics may, however, offer a glimmer of hope for SHIB investors.
