Over 9 million Shiba Inu tokens eliminated in a matter of hours, fueling a significant surge in a critical metric by 3,464%
The Shiba Inu (SHIB) cryptocurrency has recently experienced a significant spike in its burn rate, driven primarily by coordinated community efforts and large single transactions. These activities aim to reduce the circulating supply and increase scarcity.
For instance, a 24-hour surge saw burns rise by up to 3,464%, with billions of tokens destroyed in a short period. Some of this activity included a few large transactions like one burning 642,622 SHIB tokens.
These burn activities reflect strong community sentiment and strategic aims to enhance long-term tokenomics, potentially setting the stage for price gains by limiting supply. However, the impact on SHIB's price has been mixed.
Despite daily spikes in burns, SHIB's price has sometimes fallen modestly by around 4% shortly after. Conversely, larger burn surges have coincided with short-lived price rallies. Market analysts emphasize that while increased burns reduce supply and build scarcity, this does not guarantee immediate price rises but strengthens the underlying tokenomics, which could support future rallies.
Technical analysis suggests SHIB is nearing critical breakout resistance levels, with indicators like MACD and RSI hinting at possible upward momentum if these levels are surpassed. Speculation in the community includes hopes for price increases up to 130% or more linked to ongoing burn frenzies and reduced supply.
In summary, the key factors contributing to the recent burn rate spike are large community-driven token burns and strategic transactions reducing circulating SHIB supply. While this increased scarcity is fostering positive sentiment and technical setups conducive to price appreciation, price responses have so far fluctuated with both dips and rallies. Burns alone are not immediately moving SHIB's price but may bolster its long-term value potential.
Currently, Shiba Inu is facing resistance at the daily SMA 50 at $0.00001267, and the daily SMA 200 is located at $0.00001375. With the cryptocurrency market now holding 584,612,601,558,519 SHIB in circulation, it remains to be seen how the ongoing burn activities will impact SHIB's price in the long run.
[1] CoinMarketCap. (2022). Shiba Inu Price Live Data. [online] Available at: https://www.coinmarketcap.com/currencies/shiba-inu/
[2] Shibburn. (2022). Shibburn - SHIB Burn Stats & Verified Burn Transactions. [online] Available at: https://shibburn.com/
[3] Cointelegraph. (2022). Shiba Inu price rises 1.91% as burn rate spikes 3,464%. [online] Available at: https://cointelegraph.com/news/shiba-inu-price-rises-1-91-as-burn-rate-spikes-3-464
[4] TradingView. (2022). SHIB/USD - Technical Analysis Charts - TradingView. [online] Available at: https://www.tradingview.com/symbols/CRYPTO-CURRENCY/SHIBUSD/
[5] CoinGape. (2022). Shiba Inu Price Prediction: SHIB Price Could Rise Up to 130% as Burn Rate Spikes: Analysts. [online] Available at: https://coingape.com/shiba-inu-price-prediction-shib-price-could-rise-up-to-130-as-burn-rate-spikes-analysts/
- The recent surge in Shiba Inu's burn rate, driven by community efforts and strategic transactions, aims to reduce the circulating supply and increase scarcity, potentially strengthening its long-term value potential.
- CoinMarketCap data shows that the cryptocurrency market currently holds 584,612,601,558,519 SHIB in circulation.
- Market analysts emphasize that while increased burns reduce supply and build scarcity, this does not guarantee immediate price rises but strengthens the underlying tokenomics, which could support future rallies.
- Technical analysis suggests that SHIB is nearing critical breakout resistance levels, with indicators like MACD and RSI hinting at possible upward momentum if these levels are surpassed, potentially leading to price increases up to 130% or more, according to speculation in the community.
