Shiba Inu burn rate sees massive 2,296% increase in one day, the bulls are back

The broader crypto market has witnessed a massive increase in Shiba Inu combustion ratewhere the metric skyrocketed by 2,296% in just one day. This remarkable increase reflects society’s desire to decrease the overall supply of Shiba Inu and possibly induce a price increase. With the Shiba Inu showing signs of a strong revival, this could trigger a new bullish phase for the popular meme coin.

Shiba Inu burn rate skyrockets

The Shiba Inu burning mechanism is essential to its deflation strategy, which aims to trigger token scarcity by permanently removing SHIB tokens from circulation. According to new data from Shibburn, a burning portal specifically for the SHIB ecosystem, combustion rates have increased by as much as 2,050.95% within the last 24 hours.

This massive increase in the Shiba Inu burn rate has resulted in 1.28 billion SHIB tokens being permanently removed from circulation. Such a significant increase in symbolic burns is often associated with the community, as members of the Shiba Inu ecosystem constantly have recommended major token burns.

After Shibburn’s burning update on X (formerly Twitter), millions of tokens can be seen being sent to dead wallets every hour. This increase in burn rate marks a significant milestone in the SHIB community’s efforts to reduce supply and potentially increase the value of the meme coin.

Among the most significant contributors to this recent increase in the SHIB burn rate is Shibtoshi, the founder of SquidGrow, a utility meme coin. Lola, a popular member of the Shiba Inu community, revealed on X that Shibtoshi had burned over 1 billion SHIB tokens worth $25,633. This significant symbolic combustion shows the strong commitment of SHIB supporters to the mem coin.

Although an increase in SHIB’s burn rate may not immediately trigger a price increase, it can affect market sentiment and induce scarcity, which is important for ecosystem sustainability and for the long-term growth of the meme-based token.

Are bulls ready to take charge?

With the increase in the Shiba Inu burn rate, it appears that bulls are poised to take over again, potentially triggering a bullish trend reversal for the meme coin.

At the time of writing, the price of SHIB is $0.000025, reflecting a 3.38% increase over the past week, according to CoinMarketCap. The popular meme coin experienced a big bull rally earlier this month, with double-digit gains as it trailed Dogecoin price increase.

Factors such as broader market sentiment, crypto rally after the electionand the increased demand for meme coins has pushed the Shiba Inu price up. Furthermore, as SHIB burn activity increases, this could serve as another bullish catalyst for the meme coin.

Adding to the optimism, analysts like ‘Shib Spain’ on X predicted a significant price breakout for SHIB. He shared a price chart suggesting that if the meme coin can break out of its current triangle pattern, it could potentially reach a price high of $0.000038.

Featured image created with Dall.E, chart from Tradingview.com