The digital currency ecosystem is taking a very bearish turn today, a trend that is not surprising given the pressure from the US Securities and Exchange Commission (SEC) on Binance and Coinbase Global Inc. While many tokens carry the burden of sanctions, shiba inu (SHIB) has achieved an impressive increase in burn rate.
According to data from Shibburn, it is the second largest in the industry. meme coinThe burning rate of ‘s increased by 4,181% at the time of writing the news. This burn rate means that a total of 227,449,433 SHIB tokens have been sent to the dead wallet in the last 24 hours.
SHIB has recently seen a broad depression in its burn rate as investors are taking fewer trades due to the wide uncertainty created by the current SEC pressures on the industry.
The lower burn rate also translated into a lower price increase. Meme coin is down 21% in the last 24 hours to trade at $0.000006233. Despite being exempted from the SEC’s securities designation as top altcoins such as Cardano (ADA) and Solana (SOL), the token has suffered even more losses than the accused tokens.
Possible Near-Term Growth Triggers
While SHIB’s key metrics excluding burn rate have dropped, the emotion behind the scarcity of incineration is likely to rekindle positive sentiment for buyers. Despite the steady developments and updates from SHIB developers regarding important innovations in the ecosystem such as Shibarium, the assumption is that the Tier-2 protocol will not be able to provide a sudden growth in the price of the meme coin, regardless of its utility. It looks like SHIB investors will have to find solace in the knowledge that the burn rate ultimately brings additional scarcity that will help support long-term growth.