Shiba Inu (SHIB) has witnessed a massive spike in burn rate over the past 24 hours, providing a bullish outlook for the second largest meme coin by market cap. This development is important because the increase in the number of Shiba Inu burns could contribute to an increase in the SHIB price to the current rate all-time high (ATH) of $0.00008.
Shiba Inu burn rate increases by 7,911%
Shibburn data shows that the Shiba Inu burn rate increased by 7,911% in the last 24 hours, with 281.9 million SHIB tokens burned during this period. One transaction was responsible for the most of these tokens, 277.5 million SHIB tokens were sent to a dead wallet. Meanwhile, another 7.2 million SHIB tokens were burned in a single transaction.
It’s also worth noting that the 281.9 million SHIB tokens burned in the last 24 hours also account for the most tokens burned in the last seven days, with 312.3 million SHIB tokens burned in this period have been burned. This represents an increase of 1731% in the weekly Burning rate of Shiba Inu.
The increase in the Burning rate of Shiba Inu could catalyze the SHIB price rally to $0.00008 as token burns ultimately make the asset more valuable. Therefore, the SHIB price could rise further as more tokens are burned. However, it is important to highlight the role that sentiment in the broader crypto market plays in these token burns.
Recently, the Shiba Inu’s burning rate has always increased significantly Bitcoin price increases. This is understandable, given the strong positive correlation between SHIB price and the flagship crypto. Therefore, Shiba Inu often witnesses a spike in its trades, with investors looking to accumulate the meme coin when they see BTC turning bullish again.
The spike in transactions ultimately leads to this increase in burn rate. In line with this, SHIB price would continue to offer a bullish outlook and look poised to reach $0.00008 if Bitcoin price remains bullish.
Shibarium’s network activity is still low
Shibarium scan data shows that layer 2 network activity is still low, indicating a lack of interest among crypto users. Shibariums The number of daily transactions remains below 10,000, a far cry from the millions of daily transactions the network recorded at the end of 2023 and early this year.
The Demise of Shibarium is undoubtedly concerning for the Shiba Inu community, given how much the network has contributed for symbolic burns in the past. If the layer 2 network starts to see significant adoption again, the daily Shiba Inu burn rate could be much higher than the numbers currently recorded.
At the time of writing, SHIB price is trading around $0.000018, up almost 2% in the past 24 hours, according to facts from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com