The Shiba Inu burn rate has seen a turnaround, skyrocketing by 1,068% despite the meme coin’s recent price decline. This unexpected Shiba Inu burn recovery comes amid a bearish market trend, with indicators suggesting the potential for further SHIB price corrections. However, the sharp increase in burn rate could indicate a renewed interest from investors, potentially paving the way for a Shiba Inu price recovery above $0.00003.
Shiba Inu Burn Rate Jumps 1,068%
According to new data from Shibburn, more than 51.76 million SHIb tokens have been burned within the past 24 hours. This report highlights a consistent burn rate, with millions of tokens being burned on an hourly basis.
Remarkably, the Shiba Inu burn rate has skyrocketed by 1,068% within this short timeframe, reflecting a significant reduction in the token’s supply. Although Shiba Inu burns appear to be on a path to recovery, the burn rate took a nosedive earlier this month, declining by a staggering 90%. During this period, only 413,000 SHIB tokens burned, a sharp contrast to the impressive 250 million burned SHIB tokens in the previous week.
This steep decline in Shiba Inu burn rate also coincided with a drop in its price, as the popular dog-themed meme coin experienced a significant price correction after briefly surpassing the $0.00003 mark. Additionally, Santiment’s data reveals that Shiba Inu’s Market Value to Realized Value (MVRV) has fallen by more than 3%, indicating that SHIB holders may have suffered a loss over the past week.
In addition to this technical indicator, the number of daily active addresses on Shiba Inu has decreased significantly, from 6.26 billion on December 2 to 3.15 billion presently. The weakening performance of these key indicators suggests that Shiba Inu could be reading for another price correction.
Nevertheless, the recent rebound in Shiba Inu‘s burn rate has raised the possibility of a price recovery. Token burns typically contribute to an asset’s long-term price stability and growth by reducing its circulating supply. With Shiba Inu’s total supply still at 589.5 trillion, consistent burns play a crucial role in increasing scarcity, which could drive demand and potentially trigger a price surge for SHIB.
Shiba Inu Price Shows Strength Amidst Bearish Performance
CoinMarketCap’s data reveals that the Shiba Inu price has declined by 12% in the last 24 hours, falling to $0.000026. This bearish market performance underscores a significant shift in market sentiment, as investors’ demand for SHIB could be dropping.
Despite the poor performance, Shiba Inu has shown resilience by maintaining a price above the $0.000025 level. Notably, prominent analyst Bluntz on X (formerly Twitter) has emphasized Shiba Inu’s potential, describing the meme coin as extremely strong despite broader market conditions.
The analyst believes that Shiba Inu is still in a solid uptrend, albeit a controlled one, with no parabolic breakout in sight yet. Given its recent surge in burn rate and strong fundamentals, Shiba Inu could see its price possibly hit the $0.00003 mark again.
Featured image created with Dall.E, chart from Tradingview.com
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