More than 12 million coins were taken out of circulation, so the Shiba Inu burn rate rose by about 300%. What will happen to SHIB’s price next?
Amid a broader market recovery, investors became enthusiastic on Thursday after the Shiba Inu burn rate again saw an incredible 280% increase.
According to recent burn statistics, that previous spike was caused by removing about 12 million coins from the asset’s supply. Market observers, therefore, assess optimism over the meme token’s prospects for the future.
Why Is the Shiba Inu Burn Rate Increasing by 280%?
The Shiba Inu burn rate increased by 284% over the previous day, according to data provided by Shibburn on X as of January 30. The 12.5 million tokens taken entirely out of circulation are the leading cause of the enormous spike.
The SHIB burn mechanism renders recovery impossible by sending tokens to a null address. Following the rule of supply and demand, traders and investors expect a bullish impact on price, which causes the circulating supply to go lower.
The total supply of the meme coin was estimated to be 589.25 trillion SHIB.
Community Progress Boosts Market Behavior
Furthermore, the meme coin has gained more market support due to recent community developments. Interestingly, the Shiba Inu community has released ShibOS to improve market sentiment.
A blockchain-based operating system, ShibOS provides separate platforms for various applications. Following the launch, market opinions regarding the dog-themed meme token are still positive, supported by the recent spike in Shiba Inu burns.
SHIB Price Spike
The price of SHIB increased by 1%, and it is now trading at $0.00001863. $0.00001785 was its 24-hour low, while $0.00001878 was its 24-hour high.
Even the general market trend supports the rising trajectory, which coincides with the Shiba Inu burn rate spike. Despite the U.S. Fed’s steady interest rate, cryptocurrency prices showed indications of recovery on Thursday. Recent developments support the meme token’s future, while the broader trend has strengthened optimism.
The token recovered as the market processed the U.S. Fed’s most recent decision. Investors closely monitor the $0.000019 level, the next crucial resistance zone. The dog-themed meme coin may surge above this resistance, opening the door for additional gains if recent events bolster market support.
