Shiba Inu Burn Rate Surges 440%, $SHIB Price Recovery Soon?

The Shiba Inu (SHIB) burn rate has soared by nearly 440% in the past 24 hours. Moreover, the SHIB price gained over 2% amid the bullish news about token burns. Hence, a bullish reversal could be seen for the popular meme crypto if the momentum persists.

Shiba Inu Burn Rate Soars Nearly 440%

According to Shibburn, the SHIB burn rate skyrocketed by 439.89% over the last 24 hours, with a staggering 28.22 million tokens sent to dead wallets. The most significant burn came from wallet 0xa9d… which contributed 25 million SHIB to the burn initiative.

Shortly before this transfer, another user, wallet 0xdcc…, burned an additional 2 million SHIB tokens. Several other members of the community also contributed to burning millions of tokens.

Token burns have been an essential strategy for reducing SHIB’s massive supply and increasing the value of the remaining tokens. The process involves sending SHIB tokens to dead wallets where they are permanently removed from circulation. Hence, as more tokens are burned, the supply decreases, theoretically making the crypto more valuable over time.

Recently, Shiba Inu’s marketing lead, Lucie, addressed concerns from the community regarding the high supply of the token. “The devs can’t change the SHIB supply because Ryoshi burned the keys, meaning no one has control over it,” Lucie explained. “To reduce the supply, SHIB needs to be bought and burned, and that takes money.”

Lucie also highlighted the importance of community participation in the burning process. “Here’s the exciting part: to reduce the supply in a big way, we need millions (even billions) of users! The plan is to build an epic system that brings in tons of people, using Shibarium every day. The more users we have, the more SHIB can be burned, making it more valuable over time.”

SHIB Price Action

Amid this aggressive burn, the SHIB price has regained some momentum. At press time, the token recorded a 2.14% gain, trading at $0.0000134. Despite the positive price movement, the 24-hour trading volume has dropped by 17.75%, falling to $122.39 million.

Over the past month, SHIB has remained relatively stagnant, dipping by 1% over the last 30 days. However, it has managed to stay above the crucial support level of $0.000013. Thus, this could signal the potential for a bullish reversal shortly, especially as the burn rate continues to climb.

The significance of token burns cannot be overstated for a project like Shiba Inu, which started with a circulating supply of over one quadrillion tokens. While burns alone may not instantly affect the price, they are seen as a long-term strategy for reducing supply and increasing scarcity. As SHIB continues to burn tokens, the impact on price could be more apparent, particularly if burn rates remain high.

Also Read: Shiba Inu Exec Takes a Dig at Binance for Listing Rival Memecoins