According to Shibburn data, the burn rate of Shiba Inu (SHIB) has experienced a remarkable surge of 499,363.34%, resulting in the incineration of over 264 million tokens within a 24-hour period. The burn portal for SHIB was introduced in April 2022 and has consistently destroyed numerous tokens since its inception. However, in mid-2023, there was a noticeable decline in the project’s burn rate, likely attributed to decreased network activity. Additionally, the price of the asset has faced challenges throughout the year, potentially diminishing user interest.
The recent spike in the burn rate can be attributed to a specific transaction that annihilated nearly 261 million SHIB tokens. The burn activity had been relatively subdued in the preceding days, and the sudden upswing in burnt tokens may have triggered the significant increase in the burn rate. Notably, in the previous week, SHIB experienced a 47,000% spike in the burn rate when a user burned approximately 27 million tokens.
Shiba Inu (SHIB) Burn Surge: Anticipating a Bullish Momentum in Prices?
Despite the increase in the burn rate, there has been no notable impact on SHIB‘s price. The asset has experienced a slight decline of 0.2% in the daily charts, 2.9% in the weekly charts, and a 5.6% decrease over the last 14 days. However, over the previous month, the memecoin has shown a modest increase of 7.7%. Historically, Shiba Inu’s burn rate has rarely translated into significant price movements. Even with last week’s 47,000% spike in the burn rate, there was no corresponding increase in price.
The limited influence of SHIB’s burn rate on its price can be attributed to its vast circulating supply. The number of tokens burned is relatively insignificant when compared to SHIB’s extensive supply of 589 trillion. To observe a substantial impact on the asset’s price, the project would likely need to remove a much larger quantity of tokens through the burning process.