TLDR

  • Shiba Inu burn rate spiked over 700% in 24 hours

  • 15.08 million SHIB tokens were burned in the past day

  • Weekly burn rate increased 313% with 44.20 million coins incinerated

  • SHIB price currently trading around $0.00001468

  • Some analysts predict potential 30%+ gains to $0.00002 level

The popular meme cryptocurrency Shiba Inu (SHIB) has seen a dramatic increase in its burn rate, with millions of tokens being permanently removed from circulation over the past day.

According to data from Shibburn, a community-run burn tracker, the SHIB burn rate spiked by 772% in a 24-hour period, resulting in 15.08 million tokens being destroyed.

This surge in token burning represents a significant uptick compared to recent averages. Looking at a wider timeframe, the weekly burn rate for SHIB increased by 313%, with a total of 44.20 million coins incinerated over the past seven days.

Token burning refers to the practice of permanently removing cryptocurrency tokens from circulation by sending them to an inaccessible wallet address.

This process effectively reduces the total supply of tokens, which in theory could increase scarcity and potentially impact the token’s value.

The SHIB token is currently trading at $0.00001468, showing a slight increase of 0.5% over the past 24 hours. The token’s daily trading range has been between $0.00001419 and $0.00001485.

While the price movement has been relatively stable, some market watchers are speculating about potential upside in light of the accelerated burn rate.

Shytoshi Kusama, the lead developer for Shiba Inu, recently made a statement on social media that has added to the optimistic sentiment surrounding the project.

“I have only done well for Shib, and will continue to do so until, and after, I complete Ryoshi’s vision,”

Kusama wrote, hinting at ongoing developments for the Shiba Inu ecosystem.

Despite the increased burn rate and positive developer statements, data from Coinglass shows some conflicting signals in the derivatives market.

SHIB’s futures open interest decreased by 6% to $33.43 million, while derivatives trading volume fell by 12% to $63.51 million over the past day.

Some analysts remain bullish on SHIB’s prospects. A recent price analysis by CoinGape Media suggested that the token could see gains of over 30% in the near future, potentially reaching the $0.00002 level.

This prediction is based in part on the declining balance of SHIB tokens held on exchanges, which could indicate increased holding behavior among investors.

The token’s Relative Strength Index (RSI), a technical indicator used to measure market momentum, is currently at 58, approaching what some traders consider a bullish region.

This technical factor, combined with the recent surge in token burning, has contributed to a generally positive outlook among some SHIB supporters.

The Shiba Inu project, which began as a meme coin inspired by Dogecoin, has been working to establish itself as a more serious cryptocurrency ecosystem.

The project has expanded to include a decentralized exchange called ShibaSwap and has plans for further development in areas such as blockchain gaming and metaverse applications.

The post Analysis of Recent SHIB Token Burns and Market Response appeared first on Blockonomi.

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