The Shiba Inu burn rate has skyrocketed, spiking by an incredible 7,240% in just a single day. This remarkable upswing has resulted in the removal of over 1.1 billion tokens from circulation, significantly trimming the token’s vast supply. The recent spike in SHIB burns has certainly caught the cryptocurrency market’s attention, shedding light on the factors driving this significant increase and its potential ripple effects on the meme coin.
The Factors Behind the Shiba Inu Burn Rate Surge
According to Shibburn, a token burn tracker, there’s been a massive 7,240.75% jump in the Shiba Inu burn rate over the past 24 hours. In a surprising twist, this major token burn eliminated approximately 1,104,706,719 SHIB tokens from the market permanently.
Interestingly, a single wallet was the primary force behind this major SHIB burn. This anonymous wallet, with the address starting with ox6d0cf1f…, was responsible for more than 95% of the total Shiba Inu burn, sending about 1,000,148,675 SHIB tokens to a dead wallet.
Following this, another address followed suit, burning 100,000,000 SHIB tokens and contributing substantially to the burn activity. These collective efforts from Shiba Inu fans and community members have significantly impacted the SHIB circulating supply, increasing the chances of a price hike in the meme coin.
Typically, token burns aim to increase scarcity, possibly driving up the token’s value over time. Since its creation in 2020, a whopping 410.74 trillion SHIB tokens have been burned from an initial supply of 999.98 trillion. Currently, the total supply of this meme coin sits at 589.2 trillion, marking a 41% reduction in less than five years. This achievement represents a notable milestone for the Shiba Inu ecosystem. Should burn rates continue to soar, further supply deflation might fulfill the goals of many Shiba Inu supporters—namely, propelling the meme coin’s value beyond $1.
SHIB Price Dips: A Golden Opportunity?
Despite the surge in the burn rate, Shiba Inu’s price hasn’t reacted by climbing; instead, it’s actually fallen by over 8.3% in the last week. As of now, the dog-themed meme coin has dropped from a previous peak above $0.00002 to $0.0000186.
Amidst this downward trend, a crypto analyst named SHIB Bezos has pointed out substantial buying opportunities for investors. The analyst believes that Shiba Inu will eventually reach an oversold status, where the sellers will tire out, causing the meme coin’s price to rebound. Before this rebound, SHIB Bezos encourages investors to capitalize on the dip, buy more SHIB tokens at a lower price, and hold onto them for long-term growth potential over the next 5 to 10 years.
Featured image from Unsplash, chart from Tradingview.com
