Shiba Inu (SHIB) has witnessed a huge surge in a major metric today. This development comes as the popular meme coin is struggling amid the recent crypto market dump. Per the latest data from Shibburn, the burn rate of SHIB has skyrocketed 439.9% in the last 24 hours.
Over 6.2 million Shiba Inu tokens have been sent to dead wallets during this time. This token burn event was essential for the token, as it can add momentum to its price. While it may not be guaranteed, this surge is still a positive signal for the coin.
The process of sending a token to a dead address permanently removes the coin for its circulating supply. This means that these burned tokens will not be able to be accessed by anyone. They simply cannot be traded or used for transactions anymore.
It is an imperative process for Shiba Inu as it gives a boost to the SHIB price by increasing the scarcity of the coins currently in circulation. Moreover, it also helps in making the overall ecosystem more efficient and streamlined.
In the case of Shiba Inu, more than 410.72 trillion tokens have been burned so far from the initial supply. As of writing this article, the current circulation supply of the Dogecoin-rival is more than 583.34 trillion tokens. This means that the SHIB team has been successfully trying to increase the scarcity of the token.
What does it mean for SHIB price?
As of now, the meme coin is trading at $0.00001638 after a decrease of 2.76% in the last 24 hours. In addition, the trading volume of Shiba Inu has decreased 24.26% to $391.82 million. These figures show a worrying scenario for the token.
However, this bearish sentiment is prevailing on the broader market. After the recent crash, the market is expected to rebound slightly. The Shiba Inu price is also expected to recover from the current levels. Coupled with the latest surge in burn rate, the overall outlook for SHIB is not too bleak.