Shiba Inu, often referred to as the Dogecoin rival, is making waves in the crypto world once again due to its positive developments. The Shibburn tracker revealed that the burn rate of SHIB skyrocketed by over 500% today, May 20.

This surge has sparked optimism among crypto traders and investors, who are closely watching the meme-based cryptocurrency. The significant burn transactions have reduced Shiba Inu’s market supply, leading to expectations of improved tokenomics for SHIB in the near future.

Shiba Inu Burn Fuels Future Hopes

According to Shibburn, the burn rate has increased by 579% in the past 24 hours, with 9.83 million tokens being destroyed in various transactions. Notably, transfers to burn addresses from two specific wallets have caught the market's attention.

On May 20, Shiba Inu burn data indicated that the wallet address 0x608125... transferred 3.10 million SHIB to a dead wallet through multiple transactions. Additionally, the address 0xa9d... moved 4.69 million SHIB to a dead wallet in the past day. These transactions are largely responsible for the spike in the SHIB burn rate.

Despite the significant number of tokens burned, Shiba Inu's price dropped today.

Shiba Inu Price Declines

As of now, Shiba Inu's price has fallen by 4.35% in the past 24 hours to $0.00002389. However, the weekly charts show a 9.80% increase, highlighting the recent volatility of Shiba Inu. The 24-hour price range has been between $0.00002359 and $0.00002507.

Data from Coinglass shows mixed feelings among investors. While the volume of derivatives trading increased by 21.61%, the open interest (OI) for SHIB decreased by 8.13%. This suggests more trading activity but less money flowing into the market, contributing to SHIB's recent price fluctuations.

The Relative Strength Index (RSI) is around 48, indicating that the asset is neither overbought nor oversold, adding another layer of uncertainty to Shiba Inu’s future price movements.

In conclusion, while Shiba Inu has seen a significant increase in its burn rate, its price has not yet responded positively. Investors remain cautious, watching for future developments that could influence SHIB's market performance.