Shiba Inu’s burn rate spike and reduced token supply have stirred optimism, although SHIB price saw a 9% dip in the last day.
The Shiba Inu coin SHIB $0.000012 24h volatility: 1.0% Market cap: $6.88 B Vol. 24h: $127.15 M has captured investor attention yet again, driven by a dramatic spike in its burn rate. On Tuesday, burn data revealed an extraordinary 1068% surge, signaling a major reduction in SHIB’s circulating supply. The event has sparked optimism among market participants, with some speculating that the popular meme coin’s value could see a 100% rise in the near future.
According to data from Shibburn, an impressive 51.76 million SHIB tokens were sent to null addresses in just one day, permanently removing them from circulation. Notably, this is part of a larger trend, with over 2.44 billion tokens burned in the past week alone. These burns have brought Shiba Inu’s total supply down to 589.25 trillion SHIB.
The burn mechanism remains an important strategy for boosting token value by reducing supply. With fewer tokens available in the market, scarcity increases, leading to potential upward price pressure. This mechanism has been widely adopted by the Shiba Inu team to foster sustainable growth and attract long-term investors.
In addition to the burn rate surge, Shiba Inu’s layer 2 network, Shibarium, has shown massive adoption. Just 16 months after its launch, Shibarium boasts more than 2 million wallet addresses, reflecting growing confidence in the platform.
This surge comes after Shiba Inu’s marketing lead, Lucie, announced in October that the team is working on a new upgrade focused on the Shiboshis NFTs on the Shibarium blockchain.
What’s Ahead for Shiba Inu (SHIB) Price?
Despite these positive developments, SHIB’s price dropped by 9% in the past 24 hours, currently trading at $0.00002726. However, the token still holds its position as the second-largest meme coin by market capitalization, valued at $16.06 billion — second only to Dogecoin, which leads with a $60.8 billion market cap.
Adding to the excitement, Shiba Inu’s lead developer, Shytoshi Kusama, recently hinted at the launch of SHIFU, a new dog-themed meme coin. Backed by the same team that created SHIB, SHIFU has received mixed reactions within the crypto community. Prominent investor Lark Davis has called it a “legitimate” meme coin, reinforcing confidence in the team’s ability to deliver impactful projects.
While SHIB is still 69% below its all-time high of $0.00008845, achieved in October 2021, it has seen a 172% increase in value over the past year. Its market cap has also tripled during this period, highlighting its resilience and growth potential.
With the burn rate accelerating and Shibarium gaining traction, analysts suggest that Shiba Inu may be poised for another rally. At the time of writing, the total meme coin market boasts a market cap of $120.4 billion.
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