The Shiba Inu ecosystem saw an increase in SHIB burning efforts in the 24 hours leading up to Christmas Day. According to data from Shibburn.com, the Shiba Inu burn tracker, the meme coin saw a 41.87% increase in the number of Shib tokens burned compared to the previous 24-hour period. Even if this increase is small in comparison has other notable peaks in burnsits significance lies in its time. In particular, the increase in combustion rate occurred amid drop in SHIB pricewhich also contributed to a bullish reversal over the past 24 hours.
The latest figures from Shibburn.com show that millions of SHIBs were burned in 24 hours. Notably, 7,309,654 SHIB tokens were burned in the last 24 hours by Shiba Inu holders. By burned, this means that the tokens were sent to one of the three designated SHIB burn addresses. Detailed data from Shibburn.com shows that these burning efforts range from 6,387 SHIB tokens in one transaction to 4,326,195 SHIB tokens in another.
Although small in volume, the increase in burn rate appears to have had a positive effect on the price of SHIB. Indeed, the Shiba Inu price saw a 3.5% increase in the last 24 hours, marking a notable improvement in its market performance on Christmas Eve and into Christmas Day. Such an increase in activity opens the possibility that SHIB price will begin to regain steady upward movement from here.
Can SHIB Burns continue to drive up the price of the Shiba Inu?
SHIB burns play an important role in the dynamics of the Shiba Inu market by introducing a deflationary element into its supply, which can have a positive impact on its value over time. However, SHIB burns serve multiple objectives within the ecosystem that go beyond simply reducing supply.
For example, SHIB burn activity is an important indicator of activity among Shiba Inu traders. Periods of high SHIB burns or spikes in SHIB burns are often accompanied by increased network activity, which is also linked to price increases. Although SHIB burns do not guarantee a strong price rise, this correlation has prompted analysts to use them to gauge interest in the meme cryptocurrency.
Additionally, SHIB burns are linked 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 are converted into SHIB tokens, which are then burned.
At the time of writing, Shiba Inu is trading at $0.00002305 and is up 3.5% in the last 24 hours. However, the meme coin is down by around 10.71% over the past seven days. A continued increase in SHIB burning activity could contribute to a steady reversal of price gains on weekly and monthly time frames.
Featured image created with Dall.E, chart from Tradingview.com