Shiba Inu Burn Rate Bursts Up 1500%, Can SHIB Price Rally 500%?

Shiba Inu burn rate once again propelled significant investor optimism by gaining over 1500% on Monday. The latest burn metrics signal that roughly 13 million coins got ditched from the crypto’s circulating supply intraday. End result? Traders and investors anticipate price gains loom amid reduced token supply. Also, the bullish sentiments get an extra shot of optimism amid a top analyst’s prediction that SHIB price rally of 500% looms.

Shiba Inu Burn Rate Gushes Over 1500%; What Happened?

As per a recent X post by the official tracker Shibburn, Shiba Inu burn rate upsurged 1547.97% in the past 24 hours. This massive upswing comes primarily attributed to 13.29 million tokens burnt intraday.

For context, the token burn mechanism permanently reduces the asset’s supply by sending coins to a null address. Upon further examination, it was found that the wallet address ‘0x541f60e5576764’ was responsible for causing the massive burn uptick. Per the data, this address burnt 12.13 million tokens alone in just a day.

Weekly SHIB Burn Weighs Additional Market Optimism

Simultaneously, the leading meme coin’s weekly burn statistics indicated that a whopping 527.54 million tokens were permanently removed from the circulating supply. This blow to the supply fueled a 465.59% spike in the weekly burn rate. Altogether, the massive reduction in supply is anticipated to bolster the coin’s price in accordance with market equilibrium principles.

What is Shiba Inu’s Current Supply?

As of press time, Shiba Inu’s circulating supply totaled 584.34 trillion tokens. To date, a whopping 410.72 trillion tokens are burnt, dealing a major hit to the coin’s supply.

Can Price Rally 500% Amid Constant Supply Reduction?

At the time of reporting, SHIB coin’s price gained 2% intraday and exchanged hands at $0.00001328. The meme coin bottomed and peaked at $0.0000126 and $0.00001378 in the past 24 hours. The current price upswing falls in line with the recent Shiba Inu burn rate surge. Simultaneously, with the weekly burn data weighing in, price gains over the past 7 days totaled nearly 8%.

Traders and investors reflect a highly optimistic sentiment for SHIB at the moment as its price shows a recovery trend after a recent bloodbath. In tandem, market analyst ‘Javon Marks’ took to X, revealing that a breakout target at the $0.000081 level goes unchanged.

According to the analyst, SHIB price continues to hold its breakout, which occurred in late 2022/early 2023. With this price breakout holding, a potential $0.000081 price target looms right over the horizon. The analyst’s target marks a +500% increase from the current price levels. Meanwhile, the meme coin’s price has already retested and formed a hidden bullish divergence in broader time frame charts, solidifying the potential to pump ahead.

Also, Coinglass data revealed a 3.11% spike in the meme coin’s futures OI intraday, reaching $122.64 million. The derivatives market volume also shot up by a whopping 338.45% to $167.71 million. This data underlines burgeoning market interest in the asset, weighing additional optimism on future price prospects amid massive SHIB burns.