Surge in Shibarium Activity Drives Shiba Inu Burn Rate Up by 357% in 24 Hours
The Shiba Inu (SHIB) coin has made headlines as its burn rate experiences a significant spike due to increased network activities. According to Shibburn, a platform that tracks SHIB burns, the burn rate has surged by 357.48% in the past 24 hours, resulting in the burning of 14 million SHIB tokens.
In the last seven days, a total of 152,246,124 SHIBs were burnt, almost pushing the asset to $0.00001. However, the market turned bearish, causing the price to retreat to the $0.000009 zone.
Currently, the meme coin is experiencing a bearish market sentiment, with a score of 19/100. Over the past 24 hours, Shiba Inu has declined by 1.9%, with a weekly decrease of 4%. Investors are also facing a monthly loss of 13% on their investment.
Analyzing the price data, it’s evident that bulls lost control at $0.0000098, leading to a drop in price to a Friday low of $0.00000878.
Analysts believe that for significant gains to be recorded, bulls need to break the crucial resistance level within the $0.000010 to $0.000014 range. This is because 260,230 addresses have purchased a staggering 168.53 trillion SHIB within this range. However, analysts also anticipate a price fall at this point as investors may be tempted to sell once they break even. The current market trend is influenced by the overall bearish sentiment and direction of the crypto market.
One analyst, Javon Marks, had previously predicted a major price surge for Shiba Inu. He based his prediction on the formation of a falling wedge pattern on a higher time frame price chart. According to Marks, a similar pattern had emerged before SHIB reached its all-time high price in 2021. The anticipated price pump is expected to be triggered by the full impact of the burn mechanism.
In December, the Shiba Inu team introduced a transformative token-burning mechanism through a blog post. The mechanism involves two phases: the “manual phase” and the “Automated Transition.” The manual phase was initially meant to be managed manually by the official deployer wallet, while the Automated Transition phase began in January. In this phase, the burn process became automated, and the burn rate is now dependent on the network adoption rate.
The success of the burn mechanism relies heavily on the network’s adoption rate. As Shibarium experiences an increase in transactions and a significant rise in gas fees, the token burning also grows exponentially. This correlation ensures a self-sustaining cycle of growth and value appreciation as more tokens are burned with the network’s increased usage.