Shiba Inu (SHIB), the dog-themed cryptocurrency, struggled last week after FTX, the second-largest cryptocurrency exchange in the world, entered its historic financial crisis. So naturally, this hurt most of the Top 100 cryptocurrencies by market capitalization, with Solana (SOL) falling by more than 50%.
As a result, SHIB briefly surpassed Solana and Tron to become the 13th largest cryptocurrency in the world with a $5.41 billion market cap, according to CoinMarketCap.
Following last week's events, Shiba Inu lost its grip on the vital resistance line at $0.00001. It trades below this line at $0.00000993 and is back to being the 14th largest cryptocurrency with a $5.1 billion market cap.
However, in light of new data about Shiba Inu's burn rate, there is hope for the cryptocurrency.
It is no longer news that the biggest Ethereum whales are also fans of the dog-themed cryptocurrency. In a recent report, these whales have added more than $1 million worth of SHIB to their holdings.
However, the topic of interest in this article is the Burn Rate in Shiba Inu.
The burn rate on the memecoin has risen by more than ten times its original value over the last day, as the SHIB community permanently destroyed almost 24 million Shiba Inu tokens, as illustrated below.
Overall, the increase in the memecoin's burn rate is up by a staggering 1,064% over the last day, as illustrated below (with data from ShibBurn).
This brings the overall amount of SHIB burned from the total supply to 410 trillion $SHIB plus 27 trillion staked $SHIB, all from a max total supply of 999 trillion $SHIB.
However, the overall amount of SHIB transferred to Shiba Inu's burn address over the last week could have been more impressive, despite the massive burn over the previous day. This figure sits at less than 100 million SHIB.
The most plausible explanation for this spike in burn rates is the expansion of the bear market as a whole following the recent collapse of the FTX crypto exchange, which declared bankruptcy on Friday and was later hacked over the weekend.
However, the important question would be what the effects of this hike in burn rate may mean for the price of Shiba Inu.
The memecoin has fallen by 22.89% over the last seven days and is also down by 1.4% over the previous day.
Over the charts, the price of Shiba Inu has shown bearishness over the last week.
The volume to market cap ratio for the memecoin currently sits at 0.0594, even though trading volumes have decreased over the last day.
Shiba Inu Price has suffered dramatically due to the bears' influence, as seen by the memecoin's present trading below the 20 and 50-period Simple Moving Averages on the four-hour chart.
![<em>Chart showing $SHIB trading below its 20 [red] and 50 [blue] period moving averages | Source: Tradingview</em>](http://media.assettype.com/voiceofcrypto%2Fimport%2Fwp-content%2Fuploads%2F2022%2F11%2FChart-showing-SHIB-trading-below-its-20-red-and-50-blue-period-moving-averages.jpg?w=640&auto=format%2Ccompress)
However, if the bulls manage to push the price above the overhead $0.000010 resistance level, this would signal a retake of control over the market on the part of the bulls and may indicate the chance of a rally to the upside despite odds.
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