After a slow start to the week, Shiba Inu’s burn activity has sprung back to life with a 33% spike in the last 24 hours, according to data from Shibburn.com. The jump comes amid a noticeable dip in the number of SHIB burn transactions, which raises the question of whether these burns can have any effect on Shiba Inu’s struggle to transition away from selling pressure.
Small But Noteworthy SHIB Burn Amid Sluggish Market Conditions
The Shiba Inu burn metric is one of the most essential factors in determining the sentiment surrounding the meme coin. The latest burn activity has seen a total of 18,684,231 SHIB permanently removed from circulation in the past 24 hours, translating to a 33% increase from the previous 24-hour period. These burns were delivered through four separate transactions, the most significant of which involved 16,035,545 tokens sent to a burn address. This was followed by three smaller burns of 1,070,154, 788,643, and 789,889 SHIB, respectively.
Although these figures are modest compared to past high-volume burn sessions, they are notable, considering how subdued SHIB burns have been in recent days. Notably, SHIB’s burn rate remained unusually stagnant throughout this week. Current crypto market sentiment played a considerable role in this slow down in burns, with the Shiba Inu price essentially declining for the majority of the week. Therefore, the sudden 33% jump raises questions of whether this is a one-off spike.
Burn Rate Falls Short Of Meaningful Tokenomic Impact – Bullish Technical Signs?
Even with the 33% boost, the current SHIB burn rate is far too small to have a transformative effect on the token’s supply dynamics. Shiba Inu currently has a supply of over 500 trillions tokens, making these burn volumes a drop in the ocean. As such, the Shiba Inu tokenomics will likely remain unchanged at the current rate without sustained and exponential increases in daily burns.
In terms of price action, the Shiba Inu price has been tethered to the $0.0000125 and $0.000013 range. Despite this, some analysts remain optimistic.
One analyst pointed to a bullish ascending triangle forming on SHIB’s chart and predicted that the meme coin is ready to bounce off the lower trendline of this triangle and push to new highs. This outlook is most likely in reaction to Shiba Inu’s recent double bounce on support at $0.0000125.
If it holds this level and successfully pushes through the resistance at $0.000013, momentum could begin to shift back in favor of the bulls. A healthy and continuous burn rate, while not a miracle solution, could contribute to this recovery by creating positive sentiment.
At the time of writing, Shiba Inu is trading at $0.00001272, down by 1% in the past 24 hours. Shiba Inu’s trading volume is also down by 14.5% in the same timeframe, according to data from Coinmarketcap.
Featured image from DALL-E, chart from TradingView
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