The Shiba Inu burn rate has recently encountered significant hurdles, experiencing a drastic 82% decline. This downturn comes at a time when the SHIB price is showing signs of recovery and positive momentum, leading to speculation about the meme coin’s potential to revisit its 2021 All-Time High (ATH) of $0.00008.
Understanding the Shiba Inu Burn Rate Drop
In the past 24 hours, the Shiba Inu burn rate has plummeted by 82.32%. Data from the Shibburn wallet tracker indicates that only 81,937,558 SHIB tokens have been transferred to dead blockchain wallets, marking a significant decrease in burn activity.
This sharp decline starkly contrasts with earlier periods when millions of Shiba Inu tokens were being burned daily. Recently, Shiba Inu achieved a notable milestone by burning $100,000 worth of SHIB tokens in a single transaction.
Mechanism Behind SHIB Burns
The SHIB burn mechanism involves sending a portion of tokens to an inaccessible or “dead” wallet, thereby reducing the supply. This process aims to increase scarcity and potentially trigger a bullish price surge. The burns, tracked by Shibburn, are largely driven by the dedicated SHIB community.
Despite the reduction in burn rates posing a challenge, this development is unfolding during a surprising recovery phase. The SHIB price has shown a 16.28% increase in just one day, indicating continued bullish momentum. Additionally, whale activity has surged, suggesting increased investment in SHIB tokens.
Potential Impact on SHIB Price and ATH
Although the recent price recovery and whale activity are promising, the decline in burn rates raises questions about SHIB’s ability to reach $0.00008 again. Over the past 77 days, Shibburn reports an 88% decrease in burn rates, indicating a significant drop in activity.
For Shiba Inu to achieve its ATH, several bullish factors and positive market sentiment are necessary. A combination of heightened market demand, increased burn rates, and strong momentum could propel SHIB to its ATH milestone. However, the current low burn rate puts this growth trajectory into question.
SHIB’s Recent Price Surge Amidst Market Conditions
Despite the low burn rate and broader market conditions, SHIB has experienced substantial upward momentum, mirroring the bullish trend seen in Dogecoin. According to CoinMarketCap, Shiba Inu has surged by 63% in the past week and 62.35% in the last month.
As of this writing, SHIB is trading at $0.000028, following another price surge. While the coin is witnessing new gains, its daily trading volume has decreased by about 11.23%, reflecting some resistance from market bears.
