Shiba Inu Burn Rate Declines 82% Amid Price Recovery
The Shiba Inu burn rate has experienced an 82% decline, raising concerns about the meme coin's potential to reach its 2021 All-Time High of $0.00008 despite a recent price recovery.
Shiba Inu Burn Rate Decline
In the last 24 hours, Shiba Inu’s burn rate dropped by 82.32%, according to the Shibburn wallet tracker, which reported only 81,937,558 SHIB tokens sent to dead wallets. This reduction contrasts sharply with previous periods where millions of tokens were burned daily. Recently, Shiba Inu achieved a significant milestone by burning $100,000 worth of SHIB in one transaction.
The burn mechanism involves sending tokens to an inaccessible wallet to reduce supply and increase scarcity, potentially driving price increases. These burns are primarily driven by the SHIB community.
Despite the reduced burn rate, the SHIB price shows signs of recovery, increasing by 16.28% in one day, alongside rising whale activity indicating accumulation of SHIB tokens. However, the decline in burn rates raises questions about sustaining momentum toward reaching $0.00008, especially as there have been no notable burns in the past week. Over the last 77 days, burn rates have decreased by 88% according to Shibburn.
For Shiba Inu to achieve its $0.00008 ATH, several bullish factors including increased market demand, higher burn rates, and strong momentum will be necessary. The current low burn rate complicates SHIB’s growth trajectory towards this goal.
SHIB Price Surge
Despite the low burn rate, SHIB has seen significant price gains, reflecting a broader bullish trend similar to Dogecoin. According to CoinMarketCap data, Shiba Inu's price rose by 63% over the past week and 62.35% over the last month, currently trading at $0.000028. Despite these gains, daily trading volume has declined by approximately 11.23%.
