In the lead-up to Christmas, the Shiba Inu community has seen a noticeable uptick in the burning of SHIB tokens. Data from Shibburn.com, which tracks these activities, indicates a 41.87% rise in SHIB burning over the 24-hour period before the holiday compared to the day before. Although this increase might not seem massive compared to past spikes, its timing is crucial. The heightened burn activity coincides with a dip in SHIB’s price, which has intriguingly helped drive a positive turnaround for the token in the last day or so.
Recent statistics from Shibburn.com reveal that millions of SHIB have been eliminated from circulation in a single day, with a total of 7,309,654 SHIB burned by those holding the token. When we say a token is "burned," it means it’s sent to one of three specific SHIB burn addresses, effectively taking it out of the total supply. This process has seen varied transactions, from small movements of 6,387 SHIB tokens to more significant transfers of 4,326,195 SHIB tokens.
While the volume isn’t overwhelmingly large, the increase in burning has seemingly contributed to a boost in SHIB’s price. Over the past 24 hours, the Shiba Inu token’s value has jumped by 3.5%, reflecting an enhanced market performance as Christmas approaches. This surge in activity hints at the potential for SHIB to embark on a more sustained upward trend.
So, what does this mean for SHIB’s future—can these burns continue pushing its price? SHIB burns are integral to the market dynamics of Shiba Inu, introducing a deflationary pressure that can elevate its value over time. But the role of SHIB burns extends beyond merely shrinking supply.
For instance, high periods of SHIB burns can signal increased activity among traders. Such spikes are often linked with heightened network activity and, consequently, price increases. Although rising burn rates aren’t a foolproof predictor of significant price jumps, they do offer analysts a window into the growing interest surrounding this meme-based cryptocurrency.
Moreover, SHIB burns relate to various projects within the Shiba Inu ecosystem, like ShibaSwap and Shibarium. With Shibarium, a part of the BONE gas fees from this layer-2 network is converted into SHIB tokens, which are then burned.
Currently, Shiba Inu is valued at $0.00002305, reflecting a 3.5% climb over the past day. Despite this, it’s been a rough week overall, with the token dropping about 10.71% in the past seven days. A continued rise in burn activity might help turn around these short-term losses, supporting a more sustained price gain over weekly and monthly intervals.
Image credit: Dall.E, chart sourced from Tradingview.com
