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The Shiba Inu burn rate is facing new challenges, with a significant 82% decrease recorded. This decline comes at a time of recovery and positive momentum for the SHIB price, raising doubts about whether the meme coin can reach its 2021 All-Time High of $0.00008.
Decline in Shiba Inu Burn Rate
Over the past 24 hours, the burn rate of Shiba Inu has plummeted by 82.32%. The Shibburn wallet tracker has reported this sharp drop, indicating that only 81,937,558 SHIB tokens have been transferred to inactive blockchain wallets.
Further Reading
This significant decrease in burning activity starkly contrasts with previous periods when millions of Shiba Inu tokens were burned daily. Shiba Inu recently achieved a milestone by burning $100,000 worth of SHIB tokens in a single 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 price surge. These burns, tracked by Shibburn, a dedicated burn tracker for the Shiba Inu ecosystem, are mainly driven by the SHIB community.
While the drop in the Shiba Inu burn rate presents a challenge, it comes at an unexpected time. The SHIB price has been displaying signs of recovery this week, bouncing back from previous lows. The Shiba Inu price has surged by 16.28% in just one day and seems to be continuing on a bullish trajectory. Additionally, whale volume has experienced a spike, indicating that investors are accumulating SHIB tokens.
Despite the recent price recovery and whale activity, Shiba Inu’s journey to $0.00008 could be hindered by the recent decline in burn rates. This decline appears significant, as there have been no notable burns recorded for SHIB in the past week. Shibburn reports that burn rates have dropped by 88% in the last 77 days.
For Shiba Inu to reach its $0.00008 ATH, the cryptocurrency will need to be supported by several bullish factors and positive market sentiment. A combination of increased market demand, higher burn rates, and strong momentum could propel Shiba Inu to its ATH milestone. However, with the current decline in burn rates, SHIB’s upward trajectory towards a new ATH is now uncertain.
Further Reading
SHIB Price Surges by 63% in One Week
Despite the low burn rate and overall market conditions, the SHIB price has experienced a significant upward trend, registering price increases as it follows the bullish trend seen in the Dogecoin price.
Data from CoinMarketCap shows that Shiba Inu has risen by 63% in the past week and 62.35% in the last month. The meme coin is currently trading at $0.000028, following another surge in its value today. While Shiba Inu is witnessing new gains, its daily trading volume seems subdued, decreasing by approximately 11.23%.
Featured image created with Dall.E, chart from Tradingview.com