Shiba Inu Burn Rate Skyrockets 499000%: Is a Price Surge Next?

• Shiba Inu's Token Burn Rate Surges, Impact on Price Yet to be Felt
• SHIB's Burn Portal and Previous Burn Rate Decline
• Recent Burn Spike and Its Impacts
• SHIB Price Performance Despite Burn Spike
• Belief and Reality: Burn Rate versus Price Movements

Shiba Inu's Token Burn Rate Surges, Impact on Price Yet to be Felt

Shiba Inu$0.000010 -2.05%'s (SHIB) token burn tracker, Shibburn, has revealed a staggering increase in the project's burn rate. A spike of 499,363.34% was recorded, with more than 264 million tokens reported as burnt within the last 24 hours.

SHIB's Burn Portal and Previous Burn Rate Decline

The burn portal for SHIB, initially launched in April 2022, has since been responsible for the obliteration of thousands of tokens. However, there was a noted decrease in the burn rate during mid-2023, likely a result of reduced network activity. The asset's price has also faced challenges throughout the year, potentially leading to decreased user interest.

Recent Burn Spike and Its Impacts

The recent uptick in burn rate can be attributed to a single transaction that resulted in the destruction of almost 261 million SHIB tokens. The amount of tokens burnt had been relatively low in the preceding days, so this sudden increase could be the cause for the burn rate surge.

Only last week, the burn rate of SHIB saw a spike of 47000% due to one user burning nearly 27 million tokens. But will this substantial growth in the burn rate yield a rise in Shiba Inu's price?

SHIB Price Performance Despite Burn Spike

Despite the increased burn rate, SHIB's price has remained stagnant. The token has seen a 0.2% fall in the daily charts and a 2.9% decrease in the weekly charts; it is down by 5.6% over the last 14 days. However, there is a silver lining as the memecoin has risen by 7.7% over the past month.

Belief and Reality: Burn Rate versus Price Movements

Although the burn rate of Shiba Inu has experienced substantial spikes, this has not translated into significant price movements. Even last week's impressive 47000% burn rate surge did not propel a similar increase in price. This lack of price movement following a burn rate increase is likely due to the enormous circulating supply. In the face of SHIB's 589 trillion supply, the number of tokens burnt proves insignificant. For the burn rate to have a real impact on the asset's price, a more substantial quantity of tokens would need to be removed.

Edited by Jonathan Stoker