The Shiba Inu ecosystem has observed a rise in SHIB burning efforts during the 24 hours preceding Christmas day. Based on statistics from Shibburn.com, Shiba Inu’s burning tracker, the meme token has experienced a 41.87% increase in the amount of Shib tokens incinerated compared to the earlier 24-hour period. Although this growth is minor in comparison to other significant spikes in burns, its relevance is highlighted by its timing. Specifically, the increase in burn rate has taken place during a downturn in the SHIB price, which has additionally contributed to a positive turnaround in the last 24 hours.
Recent data from Shibburn.com indicates that millions of SHIB have been incinerated within a 24-hour timeframe. In particular, 7,309,654 SHIB tokens have been destroyed in the past 24 hours by Shiba Inu holders. The term burned refers to tokens that have been sent to any of the three designated SHIB burn addresses. Detailed statistics from Shibburn.com reveal that these burning actions vary from 6,387 SHIB tokens in one transaction to 4,326,195 SHIB tokens in another.
Even though not exceedingly substantial, the rise in the burn rate seems to have exerted a beneficial influence on SHIB’s price. This is evident since the Shiba Inu price has recorded a 3.5% increase in the last 24 hours, signifying a notable enhancement in its market performance on Christmas Eve and leading into Christmas Day. Such a rise in activity raises the potential for the SHIB price to initiate a consistent bullish trend from this point onward.
Will SHIB Burns Continue to Drive the Shiba Inu Price?
SHIB burns play a crucial role in Shiba Inu’s market dynamics by adding a deflationary aspect to its supply, which can favorably influence its value over time. Nonetheless, SHIB burns fulfill multiple functions within the ecosystem that go beyond solely diminishing supply.
For instance, SHIB burn activities serve as a vital indicator of activity among Shiba Inu traders. Periods of heightened SHIB burns or spikes in burns are frequently associated with an uptick in network activity, which is also correlated with price increases. Although SHIB burns do not ensure a substantial price surge, this correlation has led analysts to utilize them as a gauge of interest surrounding the meme cryptocurrency.
Moreover, SHIB burns are connected to projects within the Shiba Inu ecosystem, such as ShibaSwap and Shibarium. In the context of Shibarium, a segment of the BONE gas fees collected on the layer-2 network is transformed into SHIB tokens, which are subsequently incinerated.
At the moment of writing, Shiba Inu is valued at $0.00002305 and has increased by 3.5% over the past 24 hours. However, the meme token has declined by approximately 10.71% over the last seven days. A persistent rise in SHIB burn activity could support a steady recovery towards price gains in the weekly and monthly periods.
Featured image created with Dall.E, chart from Tradingview.com
