The cryptocurrency markets are witnessing a significant event today as Shiba Inu’s burn rate has surged by nearly 1100%. Despite the recent dip in Shiba Inu’s price, this dramatic increase in the burn rate has boosted market sentiment, hinting at a potential rally for Shiba Inu price to $0.00002.
Market Overview and SHIB’s Price Dip
Today, the leading dog-themed meme coin, Shiba Inu, saw a price drop of more than 1%. This decline aligns with a broader downturn in the crypto market, affecting major cryptos and meme coins like Dogecoin and PEPE Coins. However, the overall sentiment around Shiba Inu remains optimistic due to the burn rate surge.
Impact of SHIB Burn Rate on Market Sentiment
The SHIB burn rate soared by nearly 1100% in just one day, according to Shibburn. Approximately 19.76 million SHIB were destroyed in the last 24 hours, significantly reducing the overall supply. Two notable transactions from the address “0xa9d….d3e43” burned 6.94 million SHIB each, contributing to this spike.
Over the past week, the burn rate increased by 13%, with over 83.37 million SHIB removed from the initial supply. Currently, the total burned SHIB stands at 410.72 trillion, leaving a circulating supply of 583.33 million. This reduction in supply could drive up the value of SHIB, indicating a potential price rally.
Historical Data and Future Predictions
Historical data supports the optimism around Shiba Inu. For example, SHIB surged by 11.8% in July 2023 and 13.4% in July 2022. If this trend continues, SHIB could reach the crucial $0.00002 resistance level, given an average rise of around 12%. However, it’s important to note that past performance doesn’t always predict future results. In July 2021, SHIB experienced a slump of 28.5%.
Coinbase’s Strategic Moves
Adding to the bullish sentiment, Coinbase’s recent regulatory filing suggests new opportunities for SHIB. The exchange has sought approval from the Commodity Futures Trading Commission (CFTC) to offer future products related to Shiba Inu and other altcoins like AVA and XLM. These proposals include derivatives tied to DOT, SHIB, XLM, AVA, and LNK, with potential trading starting as early as July 15.
Coinbase’s move aligns with its strategy to expand its derivatives market and attract a broader investor base. This development could enhance SHIB’s market presence and draw more institutional and retail investors, bolstering its market offerings.
Current Market Performance
At the time of writing, Shiba Inu’s price has dropped by 1.3% to $0.00001704, after reaching a 24-hour high of $0.00001786. Over the last seven days, SHIB has fallen nearly 5%, reflecting the selling pressure in the market. Despite the price dip, Shiba Inu’s Open Interest rose 4% to $35 million, indicating strong market interest in the meme coin.
