Shiba Inu, the second-largest meme coin, has seen its price edge upward, and its token burn mechanism has also relayed a similar trend. According to the Shiba Inu burn tracker Shibburn.com, the number of SHIB tokens burned has risen by about 21.76% in the past 24-hour timeframe. This increase in SHIB burns is looking positive for the meme coin’s price going forward, but the actual burn numbers reveal a persistent challenge in achieving significant progress.
Shiba Inu Burn Rate Rises 21%
Shiba Inu has witnessed a lackluster burn activity in the past two weeks, stemming from a similar lackluster price action, activity, and interest in the cryptocurrency. As such, daily SHIB burns have perambulated around 21 million SHIB tokens burned, which is far less than the typical daily burn activity required for bullish momentum.
According to Shibburn.com, the last 24 hours were highlighted by 26,221,803 $SHIB tokens collectively sent to the SHIB burn wallets, which represents a 21.76% increase from the 21 million SHIB tokens burned in the previous 24-hour timeframe.
Despite the 21.76% rise in burn activity, the total number of tokens burned remains underwhelming. This amount, though an improvement over previous days in the past few weeks, pales in comparison to the huge circulating supply of Shiba Inu, which currently sits at more than 589 trillion tokens. To put this into perspective, even at this improved burn rate, it would take decades to make a significant dent in the token’s supply.
SHIB burns are particularly one of the many methods that the Shiba Inu community has put in place in order to contribute to steady price growth. The more SHIB tokens are burned and taken out of circulation, the better it is for Shiba Inu’s price. Interestingly, Shiba Inu lead developer Shytoshi Kusama once noted that it would be possible to burn 99% of the SHIB supply.
The current pace highlights the need for a more consistent approach to token burns if the goal of reducing supply and driving long-term price appreciation is to be achieved. However, the recent 21.76% increase could be the first step of many burn increases to come.Â
Price Rebound Brings Relief For SHIB
The broader crypto market’s recovery has provided a temporary boost to Shiba Inu’s price. Shiba Inu has managed to capitalize on the 3.48% market-wide increase and is currently trading at $0.00002222, an increase of about 3% in the past 24 hours.Â
Technical analysis of Shiba Inu’s price action shows it is looking to break above the upper trendline of a falling wedge pattern. A confirmed breakout of the falling wedge alongside market-wide inflows would send the Shiba Inu price pumping in the next few weeks.
