Shiba Inu, a popular memecoin, is poised for a potential surge in price as its burn rate skyrockets following a recent token burn. However, Shiba bulls are struggling to regain momentum as prices continue to correct downwards.
The burn rate of Shiba Inu, the second most valuable memecoin by market cap, has experienced a significant increase. This development comes at a time when Shiba Inu and other memecoins are facing challenges in sustaining momentum in the broader cryptocurrency market.
According to ShibBurn, a platform dedicated to tracking Shiba Inu’s burn rate, the memecoin’s burn rate has surged by a massive 4,907% within a 24-hour period. This increase was driven by nine transactions that burned a total of 19,387,761 SHIB tokens. In comparison, the previous day’s burn amounted to only 387,207 SHIB tokens, signifying a significant increase in the burn rate. In the past week, a total of 210,346,123 SHIB tokens have been burned.
The burn mechanism is designed to reduce the circulating supply of Shiba Inu tokens, aiming to increase demand and potentially lead to a price surge. Over the years, Shiba Inu has consistently burned its tokens to reduce the existing market supply, with the long-term goal of increasing demand and driving the price upwards.
Despite these positive developments, Shiba Inu has been trading below expectations and has not been able to keep up with rival memecoins like Dogecoin. After reaching a high price of $0.00000925 on January 28th, prices have corrected downwards, and Shib bulls have yet to revisit previous resistance levels. If selling pressure continues to increase, the memecoin could fall to lower support levels. On the other hand, increased buying pressure could potentially cause Shiba Inu to shed one of its zeros.
Currently, Shib bulls are attempting to make an upward correction to mitigate the weekly losses accumulated over the week. Additionally, trading volume has surged by 20.47% over the past 24 hours. As of now, Shiba Inu is trading at a price of $0.000008995.
In addition to the burn rate increase, the Shiba Inu network is also focused on advancing its ecosystem. Shibarium, as revealed by prominent Shiba Inu proponent Lucie on X, aims to onboard 1000 projects through various partnerships. It is important to note that the support for new projects does not mean the cancellation of existing ones.