Shiba Inu (SHIB) Witnesses a Significant Increase in Token Burn Rate, But Price Fails to Rally

On June 25th, dog-themed memecoin ShibaInu (SHIB) witnessed a significant increase in its intraday token burn rate, triggering a spike in transactions

Dog-themed memecoin ShibaInu (SHIB) witnessed a significant increase in its intraday token burn rate on June 25, triggering a surge in transactions, IntoTheBlock data shows. The blockchain analytics firm attributes the double surge in burn rates to large transactions (worth over $100,000) by whale traders, although SHIBArmy continues to pin its hopes on a SHIB price dream of $0.001. Additionally, insights from ShibaInu’s official burn tracker, Shibburn, show that 3.723 billion SHIB tokens were removed from circulation, with the burn rate soaring by 459%. As of press time, more than 410 trillion SHIB tokens have been removed from circulation. Burning refers to the permanent removal of cryptocurrency tokens from circulation to create scarcity, thereby increasing demand and market value. However, deflationary pressure on SHIB failed to trigger a price increase as after the token burn, SHIB was trading at $0.00001799. Increased activity among large investors, known as “whales,” along with a simultaneous decline in SHIB prices, suggest these large players are selling off their holdings to secure profits. This is often taken as a sign that whales think the current price is a good time to cash out, perhaps because they expect prices to fall in the future or hope to realize gains. The meme coin market has been volatile recently, stemming from Mt.Gox compensation news and broader market declines. Over the past month, ShibaInu has experienced significant downward pressure, losing 30% in value. The downtrend follows losses in the broader cryptocurrency market. On Monday, the memecoin sector suffered a 7% drop, leading to a decline in the price of the asset class. Popular meme coins such as DOGE, SHIB, FLOKI, and BRETT have all seen price drops, as have low-market cap tokens ANDY and MUMU. Analysts believe the decline was triggered by news that Mt. Gox's creditors will begin receiving compensation in July. Meme coins have all recorded price gains during today’s trading session, with green candles flooding the sector. Dogecoin, the largest meme coin by market capitalization, has gained 1.69% in the past 24 hours and is currently trading at $0.1235. Meanwhile, ShibaInu, the second largest meme coin by market capitalization, is trading at $0.00001733, showing an intraday gain of 3.06%.

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