Shiba Inu, the second-largest meme coin, has seen its price edge upward, and its token burn mechanism has also relayed a similar trend. According to the Shiba Inu burn tracker Shibburn.com, the number of SHIB tokens burned has risen by about 21.76% in the past 24-hour timeframe. This increase in SHIB burns is looking positive for the meme coin’s price going forward, but the actual burn numbers reveal a persistent challenge in achieving significant progress.
Shiba Inu Burn Rate Rises 21%
Shiba Inu has witnessed a lackluster burn activity in the past two weeks, stemming from a similar lackluster price action, activity, and interest in the cryptocurrency. As such, daily SHIB burns have perambulated around 21 million SHIB tokens burned, which is far less than the typical daily burn activity required for bullish momentum.
According to Shibburn.com, the last 24 hours were highlighted by 26,221,803 $SHIB tokens collectively sent to the SHIB burn wallets, which represents a 21.76% increase from the 21 million SHIB tokens burned in the previous 24-hour timeframe.
Despite the 21.76% rise in burn activity, the total number of tokens burned remains underwhelming. This amount, though an improvement over previous days in the past few weeks, pales in comparison to the huge circulating supply of Shiba Inu, which currently sits at more than 589 trillion tokens. To put this into perspective, even at this improved burn rate, it would take decades to make a significant dent in the token’s supply.
SHIB burns are particularly one of the many methods that the Shiba Inu community has put in place in order to contribute to steady price growth. The more SHIB tokens are burned and taken out of circulation, the better it is for Shiba Inu’s price. Interestingly, Shiba Inu lead developer Shytoshi Kusama once noted that it would be possible to burn 99% of the SHIB supply.
The current pace highlights the need for a more consistent approach to token burns if the goal of reducing supply and driving long-term price appreciation is to be achieved. However, the recent 21.76% increase could be the first step of many burn increases to come.
Price Rebound Brings Relief For SHIB
The broader crypto market’s recovery has provided a temporary boost to Shiba Inu’s price. Shiba Inu has managed to capitalize on the 3.48% market-wide increase and is currently trading at $0.00002222, an increase of about 3% in the past 24 hours.
Technical analysis of Shiba Inu’s price action shows it is looking to break above the upper trendline of a falling wedge pattern. A confirmed breakout of the falling wedge alongside market-wide inflows would send the Shiba Inu price pumping in the next few weeks.
Featured image created with Dall.E, chart from Tradingview.com
The Shiba Inu cryptocurrency has been making headlines lately, with its burn rate rising by 21% following a market rebound. While this may seem like good news on the surface, the numbers behind this increase are actually quite concerning.
The burn rate refers to the amount of Shiba Inu tokens that are being destroyed or removed from circulation. This is typically done to increase the scarcity of the currency and drive up its value. However, in the case of Shiba Inu, the burn rate has been steadily increasing, indicating that more and more tokens are being removed from circulation.
While this may initially seem like a positive development, the sheer magnitude of the burn rate increase is cause for concern. It suggests that a large number of tokens are being removed from circulation, which could potentially lead to a shortage of Shiba Inu tokens in the future.
Additionally, the rapid rise in the burn rate could also indicate that there are underlying issues with the Shiba Inu ecosystem that are driving this increase. This could include factors such as excessive token supply, lack of demand, or manipulation by large token holders.
Overall, while the market rebound may have initially seemed like a positive development for Shiba Inu, the concerning increase in the burn rate should not be overlooked. Investors should proceed with caution and closely monitor the situation to ensure that the cryptocurrency remains a viable investment option in the long run.
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Shiba Inu, Burn Rate, Market Rebound, Cryptocurrency, Shiba Inu Price, Shiba Inu News, Shiba Inu Update, Burn Rate Increase, Market Analysis, Crypto Market, Shiba Inu Burn Rate, Shiba Inu Market Trends
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