Shiba Inu burn rate jumps 487% in one day: what’s happening?

Shiba Inu SHIB/USD gained ground amid rising consumption rates, sparking optimism among technical analysts about bullish momentum for the token.

What happened: According to Shibburn data, SHIB’s burn rate jumped 486.8% over the past day, with 5.9 million SHIB coins permanently removed from circulation.

A single transaction alone represented around 2 million tokens burned.

Shytoshi Kusama, the pseudonymous lead developer of Shiba Inu, recently note that while burning 99% of SHIB’s supply seemed unlikely in the past, it now appears feasible thanks to growing collaborations within the Shibarium ecosystem.

Kusama urged more projects to adopt Shibarium’s technology stack to accelerate the burn rate

Read also: Crypto Analyst Sees Shiba Inu Rising Over 2,000% in Next Rally

Why it’s important: Despite the increase in burn rate, IntoTheBlock data shows a 48% drop in large transaction volumes and a 24.6% drop in daily active addresses.

Transactions over $100,000 increased from 939 to 626 in a single day.

On the other hand, Shibariumscan recorded an increase in daily transactions, from 4.75 million on November 23 to 4.77 million on November 24.

Data from DefiLlama highlighted that Shibarium’s total value locked (TVL) reached an all-time high of $4.76 million.

Technical analysis from Benzinga shows a relative strength index (RSI) of 39 for SHIB, which suggests that the token is currently oversold, which could lead to a price rebound.

Shiba Inu’s 50-day simple moving average (SMA) has crossed above its 100-day and 200-day SMAs, signaling an uptrend and potential buying opportunities.

Price action: Shiba Inu is trading at $0.00002564 at the time of writing, up 2.5% in the last 24 hours.

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