Shiba Inu, the popular meme coin, has recently seen a massive surge in its burn rate, with the metric increasing by a staggering 2,296% in just one day. This surge reflects the community’s desire to reduce the overall supply of Shiba Inu tokens and potentially lead to a price increase. The burn mechanism is crucial to Shiba Inu’s deflationary strategy, aiming to create token scarcity by permanently removing tokens from circulation.
According to data from the Shibburn burn portal, 1.28 billion SHIB tokens have been permanently removed from circulation due to the recent surge in burn rates. This increase in token burns is largely attributed to the community, which has been advocating for larger burn rates. Millions of tokens are being sent to dead wallets every hour, marking a significant milestone in the community’s efforts to decrease supply and boost the value of the meme coin.
One of the significant contributors to the recent surge in burn rate is Shibtoshi, the founder of SquidGrow, who burned over 1 billion SHIB tokens valued at $25,633. This substantial token burn demonstrates the strong commitment of SHIB supporters to the meme coin. While a spike in burn rate may not immediately lead to a price increase, it can impact market sentiment, induce scarcity, and contribute to the long-term growth and sustainability of the ecosystem.
With the increase in the burn rate, bulls are potentially ready to take charge and trigger a bullish trend reversal for Shiba Inu. The price of SHIB currently stands at $0.000025, reflecting a 3.38% increase over the past week. Factors such as broader market sentiment, post-election crypto rally, and increased demand for meme coins have led to the upward movement in Shiba Inu prices. Additionally, the rising burn activity could serve as another bullish catalyst for the meme coin.
Analysts like ‘Shib Spain’ have predicted a significant price breakout for SHIB, suggesting that the meme coin could potentially reach a high of $0.000038 if it breaks out of its current triangle pattern. The optimism in the Shiba Inu community, coupled with the increase in burn rates, indicates a potential bullish phase for the meme coin. As the burn mechanism continues to reduce the token supply, Shiba Inu may experience further price increases and market growth in the near future.
