The Shiba Inu price is one that is poised for upside as momentum picks up. The fundamentals that point to this increase are a culmination of the surge in the meme coin’s trading volume coupled with an absolutely massive jump in the amount of SHIB that is being burned on a daily basis.
SHIB Burn Rate Picks Up Over 1,300%
Over the last 24 hours, the SHIB burn rate has picked up exponentially which could translate to a surge in the Shiba Inu price. The community initiative which was introduced as a way to reduce the massive supply of the cryptocurrency has slowed down earlier in the month but is back in full force once again.
According to data from Shiba Inu burn tracking website Shibburn, the burn rate exploded between Wednesday and Thursday as investors sent billions of tokens to the burn address. So far, over 172 billion tokens have been incinerated, resulting in a 1,347% increase in the burn rate over the last day. The burn initiative has seen incredible participation from the community with transactions from over 50 wallets contributing to the burn value.
SHIB burn rate spikes 1,347% | Source: Shibburn
In addition to the daily burn volumes surging over 1,300%, the weekly burn figures have also recorded a notable rise. Shibburn shows that more than 732 billion SHIB tokens have been burned in the last week alone. This represents a 47.54% increase compared to the prior 7-day period.
The rise in the daily burn volume accounts for one of the highest jumps in burn rate in the course of 2023. With no particular reason behind the sudden rise, it is likely that holders have begun to see the wisdom behind burning tokens and are actively participating.
The Stars Align For Shiba Inu Price
Following the surge in the SHIB burn rate, the Shiba Inu price is looking at a crucial time that could signal a turning point in the performance of the meme coin. Firstly, the 1,347% increase points to increased participation from holders. However, it is not the only thing that suggests a possible recovery for the Shiba Inu price.
Over the last day, the daily trading volume has risen just like the burn rate. At press time, data from the token tracking website CoinMarketCap shows that the Shiba Inu volume is up over 23% in the same time period. This comes at a time when the meme coin is struggling and has possibly hit a local peak right above $0.0000071. This could establish significant support as bulls take over from here.
SHIB volume jumps 23% | Source: CoinMarketCap
Given the Shiba Inu price performance over the last few weeks, a quick recovery from here could easily climb above 10%. This would put the SHIB price at around $0.000008, where the bulls would then have to battle the bears for total control.
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If the former prevails, then the token will retest $0.000009; however, if the latter wins, then SHIB will correct back downward to retest the support at $0.0000071.
At the time of writing, the Shiba Inu price is sitting at $0.0000072. It has a market cap of $4.28 billion, making it the 19th-largest cryptocurrency in the industry.
SHIB price shows early signs of a rally | Source: SHIBUSD on Tradingview.com
Featured image from CoinMarketCap, chart from Tradingview.com