The Shiba Inu burn rate rose to 800% within the last day. This rise follows the imminent Federal Open Market Committee (FOMC) meeting, where some investors hope the token might recover despite the downturn in the broader crypto market.
In the last 24 hours, almost 6 million SHIB tokens were sent to dead wallets, adding to the interest in the meme coin. While the increased burn rate created some optimism, the SHIB price was down 5% over the period, further marring the token’s outlook.
The Shiba Inu Burn Mechanism
The SHIB community has been very vocal about the need for a burn mechanism, believing this is the only way to manage inflation and allow the token to appreciate in value over time.
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The mechanism behind Shiba Inu burning involves sending tokens to an unused or “null” wallet address, making those tokens forever inaccessible. This permanently reduces the token’s supply and makes the remaining coins more valuable.
However, the rise in value still depends on general market conditions. A burn spike may help investor confidence in the Shiba Inu ecosystem; however, a bearish broader crypto market complicates any positive outlook.
Shiba Inu’s Price Drops Ahead of FOMC Meeting
Meanwhile, the downtrend within the broader crypto market before the FOMC meeting also affected the price of SHIB and other meme coins as traders became cautious. This uncertainty in the market is based on fear of possible interest rate increases as investors move into risk-off assets.
Apart from the FOMC meeting, increased liquidation has been another significant factor influencing the overall market sentiment.
Support Levels and Investor Sentiment
Analysts have identified $0.0000185 and $0.0000212 as the critical support zone for SHIB’s price as the token’s price changes. If the token trades in that range, holders are concerned about the lack of potential for a short-term recovery.
Large SHIB token holders have been buying the token since its price drop. These holders have acquired nearly 30 trillion Shiba Inu tokens, proving they are still very confident in the project’s future.
This accumulation trend could cause a renewed surge in SHIB’s price, especially if the burn rate continues to deflate supply.
LUCIE, the project’s market lead, stated via X that the SHIB ecosystem is still growing, proving the community’s continued commitment to the Shiba Inu project and its ecosystem.
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Kusama’s Role Transition and the Ongoing Shiba Inu Evolution
In a significant shift, Shytoshi Kusama, the key visionary team lead of the Shiba Inu project, has announced he is stepping down from his role. In a post on X, Kusama mentioned that he would transition into the newly established role of Global Ambassador for the Shiba Inu ecosystem.
Kusama further said that his transition into the new role is a testament to the growth of the Shiba Inu ecosystem from a meme coin into a full-fledged Web3 platform. Under Kusama’s leadership, the project recorded significant milestones.
For instance, the ecosystem released additional ecosystem tokens, such as BONE, LEASH, and, more recently, TREAT, for various purposes. Thanks to contributing platforms such as ShibaSwap and Shibarium, the Shiba Inu ecosystem has also become decentralized
Among these, Shibarium has been the most successful, having processed over 800 million transactions since its release in August 2023. Another significant development in the pipeline is the shift into a fully Decentralized Autonomous Organization (DAO).
Governance in Shiba Inu is becoming increasingly decentralized, with the community making cooperative decisions. This move makes SHIB holders more influential in the project’s future direction.
Kusama’s New Focus
As the new global ambassador, Kusama is expected to promote Shiba Inu’s potential worldwide. One of his main tasks will include promoting ShibOS, a state-of-the-art platform that allows seamless integration into Web3 using decentralized technology.
Formerly known as the 36 Chambers of Tech, this rebranded set of tools is designed to help businesses, governments, and people seamlessly transition from Web2 to Web3.
