The Shiba Inu ecosystem saw an increase in SHIB burning endeavors in the 24 hours leading up to Christmas Day. According to data from Shibburn.com, a Shiba Inu burn tracker, the meme coin saw a 41.87% increase in the number of Shib tokens burned compared to the previous 24-hour time frame. Although this increase Small in comparison to Other notable spikes in burnsIts importance lies in its time. In particular, there has been an increase in the burn rate Amid a decline in the price of SHIBWhich also contributed to the upward shift over the past 24 hours.
Latest numbers from shipburn.com It shows that millions of SHIB were burned within a 24-hour window. In particular, 7,309,654 SHIB tokens were burned in the last 24 hours by Shiba Inu holders. By burn, what this means is that the tokens were sent to any of the three specified SHIB burn addresses. Detailed data from Shibburn.com shows that these burn attempts range from 6,387 SHIB tokens in one transaction to 4,326,195 SHIB tokens in another.
Although not exactly massive, the rise in burn rate appears to have had a positive impact on SHIB’s price. This is because the price of the Shiba Inu saw a 3.5% rise in the last 24 hours, representing a marked improvement in the market performance on Christmas Eve and before Christmas Day. This increase in activity opens up the possibility that SHIB price can start to regain a steady upward movement from here.
Can SHIB Burns continue to raise the price of the Shiba Inu?
Shep Burns Play an important role In the dynamics of the Shiba Inu market by introducing a deflationary element into their supply, which may positively impact their value over time. However, SHIB burning operations serve multiple purposes within the ecosystem that extend beyond simply reducing supply.
For example, SHIB burning activity is an important indicator Activity among Shiba Inu dealers. Periods of high SHIB burns or spikes in SHIB burns are often accompanied by an increase in activity on the network, which is also associated with price increases. While SHIB burns do not guarantee a strong price rally, this correlation has analysts using them to gauge interest surrounding the meme cryptocurrency.
Furthermore, SHIB burns are linked to projects in the Shiba Inu ecosystem, such as ShibaSwap and Shibarium. In the case of Shibarium, a portion of BONE gas fees charged on the Layer 2 network are converted into SHIB tokens, which are then burned.
At the time of writing, the Shiba Inu is trading at $0.00002305 and is up 3.5% in the past 24 hours. However, the meme coin has fallen by about 10.71% in the past seven days. A continued increase in SHIB burning activity could contribute to a steady reversal of price gains on the weekly and monthly time frames.
Featured image created with Dall.E, chart from Tradingview.com