Shiba Inu, the popular memecoin, has made headlines once again with a remarkable increase in its token burn rate. According to Shibburn, a tracker of token burns in Shiba Inu, the altcoin's token burn rate surged by approximately 570% on May 22. This significant increase indicates a substantial reduction in SHIB supply, potentially leading to positive effects on its price and creating optimism among investors.The data reveals that a total of 12.70 million SHIB were burned and removed from circulation through various transactions, resulting in a 569.50% increase in the token burn rate. Four specific wallet addresses played a crucial role in this increase, with one notable address, 0xa9d1…, moving 4.6 million SHIB to a dead wallet in two large transactions. Another address, 0x608…, transferred 1.01 million SHIB to a dead wallet, while the community wallet 0xc66… contributed to the token burns by moving 1.04 million SHIB to a dead wallet. These significant transactions led to an increase in the SHIB burn rate, reducing the supply of Shiba Inu and potentially leading to price appreciation.

The reduction in Shiba Inu's supply is seen as a potential catalyst to increase SHIB's value. From an economic perspective, a lower supply typically leads to price appreciation when demand is stable or increasing. This situation has led to increased optimism within the Shiba Inu community, with many investors closely following the altcoin's development. Currently, SHIB has successfully broken the resistance level at $0.000025 and is trading at $0.00002599 with a 1.39% increase in the last 24 hours. The altcoin has a market cap of $15.11 billion and a 24-hour trading volume of $1.17 billion, which increased by 33.58%. Analysts suggest that if SHIB continues to trade above this critical resistance level, it could rise to $0.00003 or even $0.00005. In the long term, if the upward momentum continues, a rally to $0.0001 is possible. The overall positive market sentiment has significantly boosted the price of Shiba Inu's SHIB. According to Coinglass, open interest in SHIB futures also increased by 9.24%, reaching $90.77 million. However, there was a $471,170 long liquidation that could pull SHIB's price down, but shorts accounted for nearly half of these liquidations, making the impact of long liquidations less significant.

As Shiba Inu continues to make waves in the cryptocurrency market, investors are eagerly watching its development. The significant increase in the token burn rate and the reduction in supply have created a positive outlook for the altcoin. With its current trading price and market cap, SHIB is poised for potential growth and could continue to rise in value. As the market continues to evolve, it will be interesting to see how Shiba Inu navigates the challenges and opportunities ahead.