The Shiba Inu ecosystem has witnessed an increase in SHIB burning endeavors in the 24 hours leading up to Christmas day. According to data from Shibburn.com, Shiba Inu’s burn tracker, the meme coin has witnessed a 41.87% increase in the number of Shib tokens burned when compared to the previous 24-hour timeframe. Although this increase is small in comparison to other notable spikes in burns, its significance lies in its time. Particularly, the surge in burn rate has occurred amidst a decline in the SHIB price, which has also contributed to a bullish turnaround in the past 24 hours.
The latest figures from Shibburn.com show that millions of SHIB have been burned within a 24-hour window. Particularly, 7,309,654 SHIB tokens have been burned in the past 24 hours by Shiba Inu holders. By burned, what this means is that the tokens have been sent to any of the three designated SHIB burn addresses. Detailed data from Shibburn.com shows that these burn endeavors range from 6,387 SHIB tokens in one transaction to 4,326,195 SHIB tokens in another.
Although not quite voluminous, the surge in the burn rate appears to have had a positive effect on SHIB’s price. This is because the Shiba Inu price has experienced a 3.5% uptick in the past 24 hours, marking a notable improvement in its market performance on Christmas Eve and leading up to Christmas Day. Such an increase in activity opens up the possibility of the SHIB price starting to regain a steady bullish move from here.
Can SHIB Burns Keep Pushing The Shiba Inu Price?
SHIB burns play an important role in Shiba Inu’s market dynamics by introducing a deflationary element to its supply, which can positively impact its value over time. However, SHIB burns serve multiple purposes within the ecosystem that extend beyond merely reducing supply.
For example, SHIB burn activity is an important indicator of 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 tied to price increases. While SHIB burns do not guarantee a strong price surge, this correlation has made analysts use them to gauge interest surrounding the meme cryptocurrency.
Furthermore, SHIB burns are tied to projects on the Shiba Inu ecosystem, like ShibaSwap and Shibarium. In the case of Shibarium, a portion of the BONE gas fees charged on the layer-2 network is converted to SHIB tokens, which are then burned.
At the time of writing, Shiba Inu is trading at $0.00002305 and is up by 3.5% in the past 24 hours. However, the meme coin is down by about 10.71% in the past seven days. A continued increase in SHIB burn activity could contribute to a steady reversal into price gains in the weekly and monthly timeframes.
Featured image created with Dall.E, chart from Tradingview.com
