Investors' new hope and interest in Shiba Inu (SHIB) has emerged despite market volatility. This is due to an incredible 4,100% increase in its burn rate within just 24 hours, resulting in nearly 21.7 million SHIB tokens being removed from circulation. The digital currency is once again attracting attention in the digital asset space as this incredible rise shows its massive burn rate.
A closer look at the burning rate
The burn rate is an essential metric for Shiba Inu, as it reflects the amount of signals removed from circulation unsustainably. The purpose of this standard procedure is to establish scarcity, which may increase the value of the remaining tokens.
The most recent surge was largely driven by a single transaction, which resulted in the burning of nearly 21 million tokens in one instance. A decrease in supply of this magnitude can have a positive impact on investor confidence and market sentiment.
SHIB HOURLY UPDATE$SHIB Price: $0.00002372 (1 hour -0.06% ▼ | 24 hours -2.13% ▼ ) Market Cap: $13,977,981,987 (-1.97% ▼) Total Supply: 589,257,014,659,15
TOKENS Burned Past 24Hrs: 21,709,094 (4100.35% ▲) Last 7 days: 104,230,574 (86.58% ▲)
— Shibburn (@shibburn) January 8, 2025
However, it is important to recognize that the price of SHIB did not correspond to the specific increase in the burning rate. Indeed, SHIB's price went down to +11% over this period, coming out to about $0.00002168. This decline in meme coin market value was due to a larger trend that affected the entire digital currency market which saw over $711 million in liquidation among other assets.
Shiba Inu: Whale activity increases
Interestingly, there have been a lot more whales in Shiba Inu's environment at the same time that the rate of burning has increased. Over 2,000% more transactions occurred with substantial holders, resulting in approximately $750 million exchanged in SHIB in a 24 hour period. This increase means that large buyers are either buying more tokens or giving them to others in response to changes in the market.
Future expectations and market sentiment
Many members of the Shiba Inu community are optimistic about the future of the coin, despite the current drop in price. The substantial burning rate is considered to be a proactive measure to increase scarcity and may result in future price appreciation. Investor sentiment can be unpredictable; however, community members often gain confidence in the long-term viability of the project when they see large fires.
The recent increase in the Shiba Inu's firing rate encourages optimism about its future potential; however, market realities are complex. The simultaneous price drop and macroeconomic factors that cause market volatility are a reminder to investors to be careful. In the world of cryptocurrencies, volatility is inevitable, and monitoring whale activity and burn rates will be crucial in determining SHIB's future path.
Featured image from Marca, chart from TradingView
