- Nearly $6K of Shiba coins were blazed in a week, per Shibburn.
- With 6T SHIB tokens removed in recent years, are 543T left.
- Supply dynamics explain the discrepancy in burn rate & price.
Shiba Inu (SHIB) has pivoted an intense token-burning schedule, but the 941% increase in weekly SHIB burns has barely affected the price. Over the past seven days, 322,982,323 tokens worth $5,933.50 were sent to the blockchain’s null addresses.
Shiba Inu Burn Rate on Hot Streak
With six million tokens burned over the past 24 hours, the hot streak continues as SHIB price battles to stay above the key support at $0.000018. Here, 54% of custodians profit from this price range. This puts Shiba Inu’s price at risk of fully retracing September’s bull run to $0.00002135 if burns would not provide a sufficient boost.
Notably, Shiba Inu’s burn rates heavily rely on using Shibarium Layer-2, SHIB’s native blockchain. Indeed, a large chunk of the transaction fees garnered in the gas token Bone ShibaSwap (BONE), capped at 250 million, are regularly swapped back to SHIB and burned in a quest to gradually reduce Shiba Inu’s supply.
How This Affects SHIB Price Dynamics
SHIB’s rising trading activity on Shibarium L2 could be critical in reclaiming the monthly heights of $0.00002136.
According to the blockchain explorer ShibariumScan, the SHIB Army’s blockchain pumped up to 242.89K daily transactions on October 19, 2024. Yesterday, this metric flashed another 242.89K transactions, which could be considered an anomaly as most days this month have seen Shibarium’s activity dropping below 10K daily.
As the price range between $0.000018 and $0.00002 holds the most active addresses, sell-offs in this territory could have a bearish impact on Shiba Inu’s market value. The #15 seated SHIB is changing hands at $0.0000182, sliding down by 3% in 24 hours.
On the Flipside
- Shiba Inu coin picked up a 16% increase in Derivatives trading volume. Still, the leveraged trading activity suggests that short-sellers outsource the long bidders in the latest 24-hour period with a 0.89 long vs. short ratio.
Why This Matters
Community members are more willing to contribute to supply reduction if they believe in the crypto project’s long-term success, marked by undeniable utility cases that edge out competitors.
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