The Shiba Inu burn rate faces new challenges, with a significant 82% decrease recently recorded. This decline occurs during a period of recovery and positive momentum for the SHIB price, raising questions about whether the meme coin can still reach its 2021 All-Time High of $0.00008.
In the last 24 hours, Shiba Inu’s burn rate has crashed by 82.32%. The Shibburn wallet tracker reported this substantial drop, revealing that only 81,937,558 SHIB tokens have been sent to dead blockchain wallets. This severe decrease in burn activity starkly contrasts with previous periods when millions of Shiba Inu tokens were burned daily. Not long ago, Shiba Inu achieved a historic feat, burning $100,000 worth of SHIB tokens in one transaction.
The SHIB burn mechanism involves sending a portion of tokens to an inaccessible or “dead” wallet to reduce supply, increase scarcity, and potentially trigger a bullish surge in the coin’s price. These burns, recorded by Shibburn, a dedicated burn tracker for the Shiba Inu ecosystem, are primarily driven by the SHIB community.
While the drop in Shiba Inu burn rate presents a challenge, this development comes at an unexpected time. The SHIB price has shown signs of recovery this week, bouncing back from previous lows. In just one day, the Shiba Inu price surged 16.28% and appears to be on a continued bullish momentum. Additionally, whale volume has spiked, suggesting that investors are accumulating SHIB tokens.
Despite the recent price recovery and whale activity, Shiba Inu’s rise to $0.00008 could be compromised by its recent decline in burn rates. This decline is severe, as SHIB has not recorded any notable burns over the past week. Shibburn reports that in the last 77 days, burn rates have been down 88%.
For Shiba Inu to surge to its $0.00008 ATH, the cryptocurrency will need several bullish factors and positive market sentiment to drive it. A combination of heightened market demand, increased burn rates, and strong momentum could catalyze Shiba Inu to its ATH milestone. However, with the burn rate currently down, SHIB’s ongoing growth trajectory to a new ATH is now in question.
Amidst the low burn rate and broader market conditions, the SHIB price has been on major upward momentum, recording significant price gains as it traces the bullish trend experienced by Dogecoin. CoinMarketCap data reveals that Shiba Inu increased by 63% in the past week and 62.35% in the last month. The meme coin is also trading at $0.000028 as of writing, after another value surge today. Although Shiba Inu is witnessing new gains, its daily trading volume appears muted, decreasing by about 11.23%.
