The Shiba Inu (SHIB) meme coin has been facing a significant price crash, plunging over 10% recently. However, the community has been closely watching the token's burn rate, which has seen a remarkable surge of over 12,800%.

Shiba Inu Burn Rate Jumps 12,842%

According to Shibburn, a platform dedicated to tracking SHIB token destruction, the burn rate skyrocketed by approximately 12,800% on Tuesday, June 18. In the last 24 hours, the SHIB community collectively burned 12.04 million tokens through various transactions.

A particular wallet, identified by the address 0x608…, stood out, burning a massive 10.15 million SHIB tokens via two transactions, significantly contributing to the surge in the burn rate. This reduction in supply could be a crucial factor in driving up the value of the SHIB token, as a decrease in supply with stable or growing demand typically leads to price increases.

SHIB Price Continues to Struggle

Despite the dramatic rise in Shiba Inu burn rate, the SHIB price has been on a downward trend. The meme coin's price slumped below $0.000019 lately, and now is close to dropping below $0.000018. According to Coinglass data, a whopping 22.81 million long liquidation has been noted for SHIB in the past 24 hours, which is unprecedentedly higher than the daily average liquidation.

Furthermore, the crowd sentiment toward Shiba Inu has dropped, as investors have been exiting the market, affecting large cap altcoins like SHIB and Dogecoin.

Potential for Recovery

The recent surge in token burning has generated a wave of optimism among the Shiba Inu community, hoping for a positive impact on the token's value. However, a recovery isn't as easy as it may seem, as the SHIB price has lost hold on crucial support levels, which could lead to further downturns.

The Shiba Inu community remains hopeful that the diminishing token supply will eventually lead to a price rebound. However, the market conditions and investor sentiment will play a crucial role in determining the token's future trajectory.