Once again, Shiba Inu [SHIB] has demonstrated its status as a deflationary asset through a significant increase in its burn rate. The exponential surge in the token’s burn rate over just one week has sparked curiosity about its potential impact on SHIB’s trajectory to success.
Unprecedented Spike in Shiba Inu’s Burn Rate
Investors were taken aback by the astounding 7418% surge in Shiba Inu’s burn rate within a mere week. This remarkable increase led to the incineration of over 2 billion SHIB tokens through the blockchain’s burn mechanism.
This substantial figure underscores the blockchain’s robust deflationary attributes. According to data from SHIBBURN, a total of more than 410,740,228,619,979 SHIB tokens have been burnt to date, equating to a value exceeding $12 billion based on the memecoin’s current price.
An escalation in the burn rate is generally viewed favorably as it diminishes the circulating supply, fostering scarcity in the market. The classic interplay of supply reduction and increased demand typically results in price escalations.
Consequently, this notable surge in the burn rate could potentially have a positive long-term impact on Shiba Inu’s price performance.
While there was a slight decrease in the burn rate over the past 24 hours, with a decline of over 87%, the substantial 7x surge from the previous week mitigates any immediate concerns.
SHIB’s Market Response
Simultaneous to the skyrocketing burn rate, Shiba Inu’s price exhibited bullish momentum, registering a 15% spike in the previous week. However, in alignment with the burn rate decline, the price saw a more than 3% dip in the last 24 hours, settling at $0.0000299 at the time of reporting.
Consequently, an assessment of Shiba Inu’s on-chain data by CryptoCrypto sought insights into the sustainability of this downward price trajectory. Analysis revealed that over the past week, Shiba Inu’s weighted sentiment predominantly leaned toward a positive outlook, indicative of heightened bullish sentiment.
Despite this optimism, a notable uptick in SHIB’s supply on exchanges was observed following the recent price correction, potentially driven by profit-taking activities contributing to the adjustment in SHIB’s price.
Noteworthy selling strategies were also evident among whales, as evidenced by reductions in the supply held by prominent addresses. Nevertheless, SHIB’s NVT ratio, after a substantial rise, observed a decline on November 29th. A decrease in this metric suggests undervaluation, signaling a potential price surge.
In the event of a trend reversal, Shiba Inu could see an upward movement towards its resistance level at $0.000033. Conversely, should the bearish trend persist, the memecoin might decline to $0.000028.