Shiba Inu’s Burn Rate Surges While Price Faces Downward Pressure

Shiba Inu’s (SHIB) burn rate has skyrocketed to an unprecedented 112,000% early this week, leading to the permanent removal of 116 million tokens from circulation. Despite this promising supply-side dynamic, the second-largest meme cryptocurrency by market capitalization is experiencing downward pressure in its price, currently trading at $0.00001190.

Key Highlights

• The burn rate reached 112,000%, with over 116 million SHIB tokens sent to unspendable wallets.
• SHIB’s price remains under pressure, indicating potential market uncertainties even as wallet addresses increase significantly.
• Technical analysis suggests that there may still be some signs of recovery on the horizon.

The daily burn rate reflects the amount of SHIB tokens that are permanently destroyed each day. These token burns aim to reduce the overall supply over time, creating a more deflationary environment for this digital asset.

“Over 527 trillion SHIB tokens are nearing profitability, while the burn rate exploded by 112,839% with the removal of 116 million tokens,” noted insights from CoinDesk AI.

Market Insights

Despite strong fundamentals within its ecosystem, including unique wallet growth surpassing 1.5 million addresses and a sharp increase in transactions on the Shibarium layer-2, SHIB’s price has struggled, seeing a 2% drop over the past 24 hours and nearly 5% for the week.

Technical Observations

• A double-bottom pattern is emerging on the charts, indicating a possible 20% rally to $0.000016.
• Key resistance is noted around $0.0000122, with significant trading volume reflecting that level.
• The trading range is narrow, showing consolidation around $0.00001203 to $0.000012.

Conclusion

While Shiba Inu’s supply-side dynamics present a bullish outlook, market conditions remain challenging with ongoing selling pressure. Investors remain cautious as they navigate these recent developments.