Shiba Inu (SHIB) has witnessed a massive spike in its burn rate in the last 24 hours, providing a bullish outlook for the second-largest meme coin by market cap. This development is significant as the surge in the Shiba Inu burn rate could help spark a SHIB price rally to its current all-time high (ATH) of $0.00008.
Shiba Inu Burn Rate Spikes By 7,911%
Shibburn data shows that the Shiba Inu burn rate has spiked by 7,911% in the last 24 hours, with 281.9 million SHIB tokens burned during this period. One transaction accounted for most of these tokens, as 277.5 million SHIB tokens were feels to a dead wallet. Meanwhile, another 7.2 million SHIB tokens were burned in a single transaction.
It is also worth mentioning that the 281.9 million SHIB tokens burned in the last 24 hours also account for most of the tokens burned in the last seven days, with 312.3 million SHIB tokens burned during this period. This represents a 1731% surge in the weekly Shiba Inu burn rate.
The surge in the Shiba Inu burn rate could catalyze the SHIB price rally to $0.00008 since token burns ultimately make the asset more valuable. Therefore, the SHIB price could surge further as more tokens are burned. However, it is important to highlight the role the sentiment in the broader crypto market plays in these token burns.
Lately, the Shiba Inu burn rate has always increased significantly whenever the Bitcoin price rallies. This is understandable, considering the strong positive correlation between the SHIB price and the flagship crypto. Therefore, Shiba Inu tends to witness a spike in its transactions, with investors looking to accumulate the same coin whenever they see BTC flipped bullish again.
The spike in transactions ultimately leads to this surge in the burn rate. In line with this, the SHIB price would continue to boast a bullish outlook and look poised to reach $0.00008 if the Bitcoin price remains bullish.
Shibarium's Network Activity Still Low
Shibarium scan data shows that the layer-2 network's activity is still low, indicating a lack of interest among crypto users. Shibarium's daily transactions continue to range below 10,000, which is far from the millions of daily transactions that the network recorded at the end of 2023 and at the start of the year.
Shibarium's decline is undoubtedly worrisome for the Shiba Inu community, considering how much the network has contributed to token burns in the past. If the layer-2 network begins to witness significant adoption again, the daily Shiba Inu burn rate could be much higher than the figures currently recorded.
At the time of writing, the SHIB price is trading at around $0.000018, up almost 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
