TL;DR
Shiba Inu’s burn rate has significantly increased, contributing to a reduction in its circulating supply.
The price of Shiba Inu has shown an uptrend, with a 5% increase recently. Some analysts envision further value growth.
The overall positive sentiment in the cryptocurrency market, along with the development of Shibarium, might have been influential in Shiba Inu’s recent price rally.
The Latest Burn Rate Spike
According to the latest data, Shiba Inu’s burn rate has exploded by over 900% in the past 24 hours, resulting in over 33 million SHIB destroyed.
As CryptoPotato reported, the meme coin witnessed more than 76 billion tokens burned throughout 2023, with December being the record month.
The mechanism aims to reduce the tremendous circulating supply of SHIB and make it scarcer and more valuable in time. The most recent burn rate increase coincides with the asset’s 5% increase on a 24-hour basis.
SHIB Price, Source: CoinGecko
Some analysts, including the X (Twitter) user The Coach, believe that “upside is the highest probability” for SHIB. He did not rule out the possibility of a price crash in the short term but also said that it might be a good opportunity to “buy the dip.”
The Market’s Resurgence and Shibarium
Another factor that might have impacted Shiba Inu’s latest price rally is the overall bullish sentiment of the cryptocurrency market. Bitcoin (BTC) briefly surpassed the $47K mark for the first time since the spring of 2022, with numerous experts envisioning astronomical peaks should a spot BTC ETF see the light of day in America in the near future.
The further advancement of the layer-2 blockchain solution Shibarium should also be mentioned. The network, which aims to elevate Shiba Inu above its rivals in the memecoin realm by lowering transaction fees and improving speed, has blasted through countless milestones in the past several months.
Most recently, total transactions on Shibarium exceeded 250 million, whereas wallet addresses are inching towards the 1.5 million level. Those curious to find out more about the L2 solution and its main purposes could take a look at our video below:
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