Nearly 23 million Shiba Inu (CRYPTO: SHIB) were kicked out of circulation Sunday, applying further deflationary pressure on the popular dog-themed meme coin.
What happened: The burn rate exploded 588.22% in the last 24 hours, resulting in a supply squeeze of 22.94 million SHIB tokens, according to Shibburn, the coin’s official burn tracker.
At the time of writing, about 410.74 trillion SHIBs have been burned, with the circulating supply at 584.45 trillion.
Coin burning entails sending a cryptocurrency to an unusable wallet address to remove it from circulation. This is done to create scarcity and boost its demand and market value over time.
Interestingly, the burn spike came despite a sharp drop in transactions on the ecosystem's Layer-2 blockchain, Shibarium. It's worth pointing out that a portion of transaction fees paid on Shibarium is set aside and burned through an automated burn mechanism.
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Meanwhile, the Open Interest in SHIB derivatives rose over 2% in the last 24 hours, according to Coinglass. That said, the majority of Binance traders with open SHIB positions were positioned short.
On the technical front, the Bull Bear Power indicator, which measures the strength of buyers and sellers, flashed a "Buy" signal for SHIB, according to TradingView.
Price Action: At the time of writing, SHIB was exchanging hands at $0.00001453, up 1.73% in the last 24 hours, according to data from Benzinga Pro. Year-to-date, the coin has plunged 31%.
Photo Courtesy: Digital Pixel on Shutterstock.com
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