Shiba Inu [SHIB] has once again showcased its value as a deflationary asset through a significant increase in its burn rate. The sudden spike in the token burn rate has raised questions about the potential impact on SHIB’s price in the near future.
Surge in Shiba Inu’s Token Burn Rate
The memecoin Shiba Inu surprised the market with an astonishing 7418% surge in its burn rate within a week. This spike led to the burning of over 2 billion SHIB tokens, highlighting the deflationary nature of the blockchain. According to SHIBBURN’s data, a total of more than 410,740,228,619,979 SHIB tokens have been burnt, equating to a value of over $12 billion based on the current price of the token.
An increase in burn rate signifies a positive development as it reduces the circulating supply, creating scarcity in the market. The decrease in supply paired with rising demand often results in price appreciation, indicating a potentially bullish future for Shiba Inu’s price.
Despite a slight decline in the burn rate over the past 24 hours with an 87% decrease in value, the significant surge experienced in the previous week overshadowed this minor fluctuation.
Response of SHIB to Market Dynamics
Alongside the surge in burn rate, Shiba Inu witnessed a 15% price increase last week, reflecting bullish momentum. However, the price experienced a 3% decline in the last 24 hours, with SHIB trading at $0.0000299 at the moment.
An analysis of Shiba Inu’s on-chain data reveals a predominantly positive sentiment among investors over the past week. Despite the recent price correction, the overall market sentiment remains bullish, indicating strong investor confidence in the token’s potential.
While there has been an increase in SHIB’s supply on exchanges, likely due to profit-taking activities, the dip in SHIB’s NVT ratio on the 29th of November suggests that the asset may be undervalued, potentially paving the way for a price increase.
In the event of a trend reversal, Shiba Inu could rally towards its resistance level at $0.000033. Conversely, if the bearish trend persists, the token might experience a decline to $0.000028.