According to Shibburn, a SHIB burn rate tracker, the project’s burn rate soared 139,103%.
Data shows that a total of 96.63 million SHIB tokens were destroyed in the past 24 hours, with one transaction destroying more than 96 million SHIB tokens.
Factors Affecting SHIB Price and Burn Rate
The sudden spike in the burn rate could be due to increased activity within the SHIB ecosystem. It could also be due to a sudden increase in token burns in the previous 24 hours, compared to a low number of burns in the past few days.
Will SHIB reach $0.00002 after the peak of burning?
Shiba Inu (SHIB) price rarely rises due to token burns, as the number of tokens destroyed is negligible compared to the 589 trillion tokens in circulation. While the burn rate increased by more than 139,000% in 24 hours, the asset is up just 0.2% in the same time frame.
Future Price Prediction
According to CoinCodex’s analysis, SHIB could surge to $0.00003 on September 4, 2024, which would be an increase of about 114% from current levels. However, the platform does not expect the price to remain stable and predicts a correction to current levels soon.
The only time that the SHIB token was burned and caused a price spike was when Ethereum co-founder Vitalik Buterin destroyed nearly half of the asset’s supply. Buterin received half of the supply when SHIB launched and decided to destroy 90% of the tokens he received.
Similar burns could lead to another 2021-like price surge for the popular memecoin. The SHIB team is reportedly working on a new burn mechanism that could potentially destroy trillions of tokens per year. Such a large-scale burn could have a positive impact on SHIB’s price.
