According to recent data from the Shiba Inu (SHIB) burn rate tracker, Shibburn, indicates a staggering spike in the project’s burn rate, soaring by 139,103%. Within the past 24 hours alone, an impressive total of 96.63 million SHIB tokens were incinerated. Notably, one transaction accounted for over 96 million tokens being burned, highlighting a significant event within the ecosystem.
This sudden increase in the burn rate may be attributed to a surge in activity and interest within the Shiba Inu community, possibly driven by recent developments, partnerships, or marketing initiatives.
Additionally, it could reflect a response to a low burn volume in the days leading up to this spike, suggesting a strategic move to create scarcity and increase the token’s value. As the SHIB ecosystem continues to evolve, these patterns of token burns may play a crucial role in shaping its future dynamics.
Could SHIB Reach $0.00002 After the Recent Burn Surge?
The price of Shiba Inu (SHIB) has rarely seen significant increases due to token burns, as the quantity of tokens being destroyed is minimal compared to the vast supply of 589 trillion tokens in circulation. Despite a staggering 139,000% surge in the burn rate over a 24-hour period, the asset’s price has only managed to rise by only 0.32% during the same timeframe.
According to our expert’s technical analysis, the SHIB coin could reach $0.00003 by the end of 2024, representing a potential increase of around 120% from its current price. However, the analyst expects prices to stabilize, forecasting a correction back to current levels shortly after.
The only instance where burning the SHIB tokens resulted in a significant price spike was when Ethereum co-founder Vitalik Buterin burned nearly half of the total supply. Upon the launch of SHIB, Buterin was allocated half of the entire supply, amounting to approximately 1 quadrillion tokens.
In a strategic move to enhance the token’s value and reduce circulation, he decided to burn 90% of the tokens he received, which translated to around 410 trillion SHIB tokens.
A comparable burn could trigger a price rally for the popular memecoin similar to that of 2021. The SHIB team is said to be developing a new burn mechanism that could eliminate trillions of tokens annually. Such significant burns could have a positive effect on the SHIB coin’s price.
Also Read: 5 Must-See Blockchain Projects You Don’t Want to Miss!
Disclaimer
The information in this article should not be considered financial advice, and the OvenAdd platform is intended only to provide educational and general information. Please conduct your own research and consult a financial advisor before making any investment choices.
