Number of Shiba Inu tokens burned on market tumbles down rapidly, but there’s catch
According to data from Shibburn Portal, the burn rate of one of the largest meme tokens in the market has dropped by 40% in the past 24 hours. Although such a strong and sharp drop sounds worrying, investors should not go into panic mode, and the reason is simple.
In the last 72 hours, SHIB’s price on the market spiked massively and reached a price level we have not seen in months. Such a rapid value spike caused an increase in inflows on the market and more network activity, which is one of the best ways of providing SHIB to burn.
Larger Shiba Inu destroyers such as the Amazon Shib Burner recently removed more than 40 million from circulation. With the strong price performance of tokens like the one shown over the past few weeks, more users are going to discover the token and potentially use it as a payment tool, which directly leads to an increase in the burn rate.
The drop in the burn rate we are seeing today is nothing but a correction from elevated values that we monitored a few days ago.
Will there be a Shib rally?
According to the coin’s daily chart, SHIB is currently sitting at a fundamental resistance level and has yet to break out, thanks to lack of trading volume and increased selling pressure yesterday, leading to a 13% drop.
Considering the nature of trading activity on Aug. 15, the main source of the pressure was tied to retail traders and investors who most likely sold their holdings at a loss considering the on-chain spending pattern.
As of press time, the Shiba Inu is changing hands with a 4% price increase over the past 24 hours at $0.0000159.
