- Shiba Inu’s value surged over 35% monthly, boosted by a massive burn rate of 8.59 billion SHIB tokens in 24 hours.
- Notable burn transactions included one for 8.53 billion SHIB tokens, increasing investor optimism and reducing immediate selling pressure.
Shiba Inu (SHIB), the dog-themed meme cryptocurrency, has experienced a remarkable surge in value over the past month, driven by a skyrocketing burn rate and the successful execution of its burning mechanism.
In recent weeks, Shiba Inu (SHIB) has defied market trends by surging over 35.44% in value, demonstrating resilience despite the year’s price fluctuations. The most recent rally, however, can be attributed to a surge in SHIB’s burn rate, with a staggering 161,540.53% increase observed on December 22, 2023.
Unprecedented Burn Rate
On that fateful day, the burning mechanism for SHIB tokens incinerated an astounding 8.59 billion SHIB coins, reaching unprecedented levels. Shibburn, a website that monitors SHIB burn insights, indicates that a staggering 17.22 billion SHIB tokens burned in the past seven days alone.
Among the noteworthy burn transactions, a transaction that sticks out involves burning 8.53 billion SHIB tokens, or almost $90,000. This transfer to a dormant account was made using an unidentified wallet address (0xc7d…). The token is becoming increasingly rare due to more notable burn operations involving 20 million and 24 million SHIB tokens.
The significant burn rate is directly responsible for the recent price increase that SHIB has experienced. According to the most recent data, Shiba Inu was up 4.90 percent, or $0.00001079. In addition, the 24-hour trading volume rose to $239.26 million, a 50.52% rise. Over this time, the value of the SHIB market cap increased by 5.24% to $6.36 billion.
On December 8, 2023, Shiba Inu gained notoriety when it lost a zero and hit the $0.00001 threshold. A 110% increase in the burn rate marked this momentous occasion. Despite experiencing unfavorable trends in the past year, Shiba Inu has achieved a gain of approximately 25%.
Burning Mechanism’s Success
The successful implementation of the project’s burning mechanism is primarily responsible for the price increase of SHIB in the recent past. By lowering the amount of SHIB in circulation, this method may eventually make it more valuable and scarce. More than forty-one percent of Shiba Inu has already been lost, according to research from Shibburn.
The development of Shibarium, a layer-2 blockchain solution, could be another element in SHIB’s comeback. Since its official introduction in August of that same year, Shibarium has significantly increased daily transactions, reaching over 160 million by the end of December. The network has more than 2.2 million total blocks, demonstrating its expansion and uptake.
The recent renaissance of Shiba Inu has benefited its investors. Nearly 40% of SHIB holders presently hold paper profits, while 55% are in the red, according to statistics from IntoTheBlock. Comparing this to around three months ago, when almost 90% of holders were in unrealized losses, is a huge improvement.
Shifting Investment Patterns
The transition of SHIB holders from traditional marketplaces to self-custody mechanisms is remarkable. The net flow of SHIB on exchanges has shown this development. Three times in the last four days, outflows have outpaced inflows, according to CryptoQuant. This change is a bullish signal since it lessens the selling pressure for now and raises the possibility of upward short-term price movement for SHIB.
