The Shiba Inu ecosystem has seen an increase in SHIB burning efforts in the 24 hours leading up to Christmas. According to data from Shibburn.com, Shiba Inu’s burn tracker, the meme coin saw a 41.87% increase in the number of Shib tokens burned compared to the previous 24-hour period. Although this increase is small in comparison To other notable spikes in burnsits importance lies in its time. In particular, there was an increase in the combustion rate amid a drop in SHIB pricewhich also contributed to a bullish trend reversal in the last 24 hours.
The latest figures from Shibburn.com show that millions of SHIB were burned within a 24-hour window. Notably, 7,309,654 SHIB tokens were burned by Shiba Inu holders in the last 24 hours. By burned it means that the tokens were sent to one of the three designated SHIB burn addresses. Detailed data from Shibburn.com shows that these deletion efforts range from 6,387 SHIB tokens in one transaction to 4,326,195 SHIB tokens in another.
Although not entirely extensive, the increase in burn rate appears to have had a positive impact on SHIB’s price. This is because the Shiba Inu price has increased by 3.5% in the last 24 hours, marking a significant improvement in its market performance on Christmas Eve and in the lead up to Christmas Day. Such an increase in activity opens up the possibility of SHIB price resuming a steady upward trend from here.
Can SHIB Burns drive up the Shiba Inu price further?
SHIB is burning play an important role in Shiba Inu market dynamics by introducing a deflationary element into its offering, which can have a positive impact on its value over time. However, SHIB burns serve multiple purposes within the ecosystem beyond simply reducing supply.
For example, SHIB combustion activity is an important indicator of this Activity among Shiba Inu traders. High periods of 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 increase, this correlation has analysts using them to gauge interest in the meme cryptocurrency.
Additionally, SHIB burns are associated with projects in the Shiba Inu ecosystem such as ShibaSwap and Shibarium. In the case of Shibarium, a portion of the BONE gas fees collected on the Layer 2 network are converted into SHIB tokens, which are then burned.
At the time of writing, Shiba Inu is trading at $0.00002305 and is up 3.5% in the last 24 hours. However, the meme coin has fallen by around 10.71% in the last seven days. A sustained increase in SHIB burning activity could contribute to a steady reversal of price increases on the weekly and monthly time frames.
Featured image created with Dall.E, chart from Tradingview.com