- Popular memecoin Shiba Inu is positioned for a potential price upswing as the burn rate skyrockets following its most recent token burn.
- Shib bulls struggle to regain momentum as prices continue to correct downwards.
The second most valuable memecoin by market cap has recorded a notable increase in its burn rate. The new development comes at a time when memecoins Shiba Inu are struggling to sustain momentum in the broader cryptocurrency market.
According to ShibBurn, a platform dedicated to tracking Shiba Inu’s burn rate, Shiba Inu’s burn rate recorded a massive 4,907% increase over a 24-hour time frame.
As ShibBurn’s data revealed, over nine transactions were carried out to initiate the burn, all of which totaled 19,387,761 SHIB. Before this, the amount of tokens burned the day before totaled 387,207 SHIB tokens, which is significantly lower than the most recent burn. As a result, the daily burn rate has soared by 97%. Over the past week, the amount of tokens burned totaled 210,346,123 SHIB.
The Shiba Inu burn is a deflationary mechanism designed to cut down on the circulating supply of Shiba Inu tokens. To successfully carry out a burn, a certain amount of SHIB tokens to a specific burn address are reserved for burns alone.
Over the years, Shiba Inu has been on a continuous journey to burn its tokens, in a bid to reduce its already existing market supply. In the long term, as supply reduces, demand is poised to increase. The price of Shiba Inu could also skyrocket as a result.
Bears are still in control as Shiba Inu continues to trade downwards
Notably, Shiba Inu has been trading lower than market players anticipated. The asset has failed to keep up with rival memecoins like Dogecoin as it remained stagnant over the past weeks.
After hitting a price high of $0.00000925 on the 28th of January, prices corrected downwards and Shib bulls are still yet to revisit previous resistance levels. Going forward, if selling pressure increases, the memecoin might fall to lower support levels. On the other hand, increased buying pressure could cause Shiba Inu to lose one of its zeros.
During the time of this report, Shib Bulls are attempting to make a much-needed upward correction as weekly losses built up over the week. On the flip side, trading volume has surged by 20.47% over the last 24 hours. The memecoin is now trading at a press time price of $0.000008995.
Meanwhile, the network is also reiterating its commitment to advancing the Shiba Inu ecosystem. As Lucie, a prominent Shiba Inu proponent revealed on X, in a recent post, Shibarium aspires to onboard 1000 projects with numerous partnerships. She added that Shibarium’s support for new projects does not mean that it will be canceling the existing ones.
