The Shiba Inu burn rate is on the rise once again after an incredible day of activity, jumping more than 900% in a 24-hour period. At the same time, the price of the Shiba Inu native token SHIB has been rallying, suggesting a correlation between the two.
Shiba Inu Burn Rate Spikes 903%
According to the Shibburn website, a platform that tracks the number of SHIB tokens that are sent to the burn wallet every day, the SHIB burn rate has seen a significant 24-hour spike. The website shows that the total burns carried out in the last day have caused the burn rate to rise a total of 903.38% during this time.
These burns come from a variety of wallets carrying thousands of tokens to the burn address. However, one burn transaction stands out of all of the burns. The transaction alone saw more than 30.9 million SHIB tokens being sent to the burn address. This burn made up for about 90% of the total burns that were carried out in the 24-hour period.
Source: Shibburn
Other significant burns during this time also include a single transaction carrying one million tokens to the burn address. Then one wallet, “0x811be” burned more than 664,000 tokens in a single transaction. While another address identified as “0x07023b” sent 548,848 tokens to the burn address.
However, this surge in the burn rate has not done much to change the negative momentum on the weekly timeframe. Shibburn notes on its X (formerly Twitter) account that the SHIB burn rate over the last seven days is down 78.47% compared to the figures for the prior week.
HOURLY SHIB UPDATE$SHIB Price: $0.00000942 (1hr -0.81% ▼ | 24hr 4.81% ▲ )
Market Cap: $5,581,942,789 (5.02% ▲)
Total Supply: 589,301,687,946,655TOKENS BURNT
Past 24Hrs: 33,873,020 (903.38% ▲)
Past 7 Days: 111,170,496 (-78.47% ▼)— Shibburn (@shibburn) January 9, 2024
SHIB price starts to retrace | Source: SHIBUSD on Tradingview.com
Can SHIB Price Continue To Rally?
Coincidentally, the SHIB price has seen an upturn following the rise in the Shiba Inu burn rate. This is an interesting turn of events given the fact that the price of the meme coin has not shown a similar correlation to the burn rate over the last few months.
Toward the end of 2023, the SHIB burn rate had surged tremendously but the price did not follow this upside until now. This suggests that the bull sentiment returning to the market could be driving both the price and the rate at which investors are willing to burn their SHIB tokens in a bid to reduce the circulating supply.
If this correlation holds, then a continuous increase in the burn rate could spell good news for Shiba Inu holders. However, there is still the matter of altcoins following the Bitcoin price trend which could hinder the price recovery if BTC’s price were to fall.
At the time of writing, SHIB is trading at $0.000009433, up 4.7% in the last day but down 13.54% in the last week, according to data from CoinMarketCap.