Shiba Inu (SHIB) continues to see a dramatic increase in its burn rate – investors are hoping for a return to prices not seen since 2021.
As the crypto market grows with a market cap of $3.09 trillion, SHIB is showing signs of recovery despite being over 70% below its all-time high (ATH). The peak burn rate, a notable increase of 6,223%, suggests a transformation within the Shiba Inu ecosystem, potentially setting the stage for a future bull run.
According to Shibburn dataOver the past 24 hours, the Shiba Inu community destroyed 3,690,656 SHIB tokens to reduce the circulating supply. This action is part of a broader initiative to increase the scarcity of the token, essential to increasing its value. The total amount burned reached an extraordinary 410,737,816,463,240 SHIB, bringing the circulating supply to approximately 583 trillion tokens.
The strategy behind burning is clear: reducing the number of tokens in circulation increases scarcity, and greater scarcity can increase demand, which will ultimately drive up the price. As the community continues to advocate for further reductions in SHIB supply, these burns could significantly influence the token’s price action. Additionally, the launch of the Shibarium burn portalwhich allows users to participate in token burns, has further fueled this effort.
Shiba Inu price recovery: small gains, big potential
Despite a year marked by declining markets, the Shiba Inu has shown strong resilience. Recently, SHIB has seen an encouraging price rally, with a 3% increase in the last 24 hours, bringing its value to $0.000025, according to Brave New Coin. SHIB Price Index. Over the past month, the asset has grown by over 31%, contributing to a remarkable 144% year-to-date growth.
The main driver of this price increase lies in the continued development within the Shiba Inu ecosystem. Efforts to evolve the token beyond its meme coin status have made it a more legitimate asset with potential real-world utility. As the ecosystem grows and matures, demand for SHIB may increase, particularly among investors seeking new opportunities in the growing cryptocurrency market.
Current price movements and on-chain data suggest that SHIB is approaching a critical inflection point. After months of consolidation, the token is approaching a key resistance level at $0.000025. If SHIB maintains its momentum and breaks this barrier, it could trigger a larger price rally. Traders monitor the 50-day and 200-day exponential moving averages (EMA), which are bullish indicators.
Additionally, trading volume has increased in recent days, reflecting increased investor interest. Over the past week, Shiba Inu recorded $2.69 billion in transactions exceeding $100,000, signaling increasing activity from large investors. Currently, 61% of SHIB holders are making profits, which could encourage further accumulation. However, caution remains in order since 31% of addresses remain at a loss.
The Double-Edged Sword of SHIB’s Popularity
A closer look at the structure of the Shiba Inu market reveals that 73% of SHIB is held by large holders, or “whales.” While this concentration indicates strong support for the asset, it also makes the token vulnerable to significant price fluctuations, especially if large holders decide to liquidate their positions. This makes SHIB a more volatile asset than others with a more decentralized holder base.
However, the recent surge in burn, combined with increasing trading volumes and growing interest from large investors, could provide the support needed for SHIB to continue its upward trajectory. The next major resistance level to watch is $0.00003. If SHIB manages to surpass this price and maintain it, it could pave the way for even higher targets in the near future.
As the crypto market as a whole shows signs of recovery, many are wondering if Shiba Inu can reclaim its previous all-time high of $0.00008845. Currently, the token is down over 71% from that high, but the recent wave of burns and continued community involvement give hope that SHIB might be ready for a comeback.