Shiba Inu (SHIB) Skyrockets 874% in Major Metric, Here's Why

Shiba Inu (SHIB) took a significant blow earlier today after the WazirX hack. The price of SHIB has also been severely impacted by it. However, one silver lining has emerged for one of the most popular meme coins on the market.

The burn rate of SHIB has skyrocketed 874.74% in the last 24 hours, per Shibburn. More than 8.7 million tokens have been sent to dead wallets during this time. The biggest transaction occurred almost six hours ago, when approximately five million Shiba Inu tokens were destroyed. 

Overall, 410 trillion tokens have been taken out of the initial circulation supply of the meme coin. As of writing time, 583 trillion tokens remain in the circulation supply of SHIB. Today’s burning event is a crucial development, as it came at a time when the Shiba Inu price required a significant boost.

It is a fact that reducing the supply of a coin injects bullish momentum into its price movements. For SHIB, the community has remained determined to continuously reduce its supply. The ultimate goal is to make SHIB a deflationary asset, which will eventually be bullish for its price.

Shiba Inu price dynamics

While today’s burning event is a crucial development, more effort is required to make Shiba Inu a truly deflationary coin. In addition, burning will impact it over the long term. That is why the SHIB price has not responded to it yet. Currently, the meme coin is down 9.44% in the last 24 hours, and its price stands at $0.00001757.

This major price crash is a direct result of a recent hack, where India's largest crypto exchange, WazirX, was compromised earlier today. More than $230 million of user assets were exploited in this attack. Around $102 million of it are in Shiba Inu. As a result, the Shiba Inu price crashed severely. It remains to be seen how the coin will recover from this point.