The wider cryptocurrency market witnessed a massive spike in the Shiba Inu destruction rate, with the metric surging 2,296% in just one day.
This astonishing growth reflects the community’s desire to reduce the total supply of Shiba Inu and potentially spark a price rally. As Shiba Inu shows signs of a strong recovery, this could spark a new bullish phase for the popular meme token.
Shiba Inu burning rate soars
The Shiba Inu burning mechanism is crucial to its deflationary strategy, which aims to trigger token scarcity by permanently removing SHIB tokens from circulation. According to the latest data from Shibburn, a burning portal dedicated to the SHIB ecosystem, the burning rate has surged by 2,050.95% in the past 24 hours.
This massive spike in the Shiba Inu burn rate resulted in 1.28 billion SHIB tokens being permanently removed from circulation. Such a large increase in the token burn rate is typically of concern to the community, as members of the Shiba Inu ecosystem have been advocating for larger token burns.
According to Shibburn’s burn updates posted on X (formerly Twitter), we can see millions of tokens being sent to dead wallets every hour. The surge in the burn rate marks an important milestone in the SHIB community’s efforts to reduce supply and potentially increase the value of the meme coin.
One of the most significant contributors to the recent spike in SHIB’s burn rate is Shibtoshi, the founder of the utility meme coin SquidGrow. Popular Shiba Inu community member Lola revealed on X that Shibtoshi has destroyed more than 1 billion SHIB tokens, worth $25,633. Such a large-scale token burn shows the strong commitment of SHIB supporters to the meme coin.
While a spike in SHIB burn rate may not immediately trigger a price increase, it can influence market sentiment and induce scarcity, which is critical to the sustainability of the ecosystem and the long-term growth of meme-based tokens.
Are the bulls ready to take control?
With the Shiba Inu burn rate increasing, it seems like the bulls are ready to retake control, which could trigger a bullish trend reversal for the memecoin.
According to CoinMarketCap, SHIB is priced at $0.000025 at the time of writing, having gained 3.38% over the past week. The popular meme coin experienced a major bull rally earlier this month, recording double-digit gains driven by a surge in the price of Dogecoin.
Factors such as broader market sentiment, post-election cryptocurrency rally, and increased demand for meme coins have driven Shiba Inu prices higher. Additionally, with the increase in SHIB destruction activities, this could serve as another bullish catalyst for meme coins.
On a more bullish note, analysts such as “Shib Spain” on X are predicting a massive breakout for SHIB’s price. He shared a price chart that suggests that if the meme coin is able to break out of its current triangle pattern, its price could reach highs of $0.000038.
