The Shiba Inu community has seen a rise in the burning of SHIB tokens in the days leading up to Christmas. Data from Shibburn.com, which tracks the SHIB burn rate, reveals a 41.87% increase in burned tokens in the last 24 hours compared to the previous day. While this increase is minor relative to past burn spikes, its timing is notable, occurring amid a drop in SHIB’s price, which has recently shown signs of bouncing back.
Surge in Shiba Inu Token Burns Drives Price Increase
Recent statistics from Shibburn.com indicate that millions of SHIB tokens have been incinerated within the last day. Specifically, Shiba Inu holders burned 7,309,654 tokens during this time. Burning means these tokens were sent to designated burn addresses, with individual transactions ranging from 6,387 to 4,326,195 tokens.
Even though the volume of burned tokens isn’t massive, this increase appears to positively affect SHIB’s price, which rose by 3.5% in the past 24 hours. This improvement was observed as the market performed well on Christmas Eve and into the holiday, suggesting a possible turnaround in SHIB’s pricing trend.
Will Continuous SHIB Burns Sustain Price Growth?
SHIB token burns significantly influence Shiba Inu’s market by reducing its supply, potentially enhancing its value in the long run. However, these burns also serve broader purposes within the ecosystem.
For instance, burned tokens are indicators of trader activity. Increases in SHIB burn rates often coincide with heightened network usage, which can correspond with price hikes. Although burns do not ensure price surge, analysts observe this relationship to gauge interest in the cryptocurrency.
Additionally, SHIB burns connect to projects like ShibaSwap and Shibarium. In Shibarium, for example, part of the BONE gas fees is converted into SHIB tokens, which are then burned.
Currently, Shiba Inu is trading at $0.00002305, reflecting a 3.5% rise in the last 24 hours, although it has decreased by about 10.71% over the past week. An ongoing increase in SHIB burn activities could further support a positive price trend in both the weekly and monthly perspectives.
