• The Shiba Inu burn rate increased by 569% in the last 24 hours, with nearly 14 million SHIB tokens burned.

• Despite the daily surge, the weekly burn rate remains low, with a 70.41% decline from the previous week.

The Shiba Inu burn rate has surged over 569% in the past 24 hours, marking a significant shift after a slow start to the week. This acceleration aligns with the ongoing crypto market rally, highlighting increased activity among Shiba Inu holders.

Significant Increase in Burn Transactions

A significant development in Shiba Inu’s token dynamics is the dramatic increase in its burn rate. On May 22nd, the burn rate soared, permanently removing 12.70 million SHIB tokens from circulation. This development has injected a wave of optimism in the market regarding the future valuation of the memecoin.

According to Shibburn, a burn tracking website, highlighting a surge in the past 24 hours. Four specific wallet addresses played a crucial role in this increase. One address alone transferred 4.6 million SHIB to a dead wallet in two major transactions, while another moved 1.01 million SHIB.

A third wallet contributed 1.04 million SHIB to the burn rate increase. These actions have cumulatively led to a total of 410.72 trillion SHIB tokens burned, with the current circulating supply standing at 583 trillion and 6.2 trillion SHIB staked across various platforms.

Weekly Burn Rate Challenges

Despite the daily burn rate’s significant increase, the weekly burn rate remains low. Shibburn’s data reveals that over 42.4 million tokens have been burned this week, representing a 70.41% decline from the previous week. This shortfall indicates that the weekly burns are lagging. However, any movement of SHIB tokens to the burn address benefits the ecosystem by reducing the overall supply.

The burn initiative aims to increase the SHIB price by decreasing the token supply, which is currently over 500 trillion. By reducing the supply, the community hopes to boost demand.

However, the burn rate has not accelerated as quickly as anticipated. Since its inception almost two years ago, the burn initiative has yet to reach 1 trillion tokens. To date, around 410.7 trillion tokens have been burned, with Ethereum founder Vitalik Buterin burning 410 trillion tokens in 2021. Thus, the community has collectively burned approximately 700 billion tokens since the burn began.

Supporting this optimistic outlook, data from Santiment indicates a significant rise in Shiba Inu’s daily active addresses. The number surged from below 4,000 at the start of the month to over 11,000, reflecting robust activity and possibly increased buying interest in SHIB.

Recent Price Movement and Resistance Levels

Shiba Inu has shown alignment with broader trends in the current bearish crypto market, registering an 11.8% increase over the past week. Despite this robust growth, SHIB’s price movements in the last 24 hours have slightly declined by 2%, trading at $0.00002445. 

The 24-hour trading volume for SHIB declined by 32.58%, reaching $14.4 billion. This spike in trading activity suggests heightened interest and optimism among traders. SHIB futures open interest, which rose by 9.24% to $90.77 million, according to Coinglass. Despite the dominance of long positions being liquidated ($471,170), the impact of shorts has been less significant, suggesting a relatively balanced trading environment.