Shiba Inu Burn Spikes 1000%, SHIB Price Set For 50% Rally?

Ronny Mugendi
August 20, 2024
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U.S ETFs Breach 1M BTC Held, What It Means For Shiba Inu Price

Highlights

  • SHIB's burn rate surged 1,088%, with nearly 100,000 tokens incinerated, boosting the price by almost 6%.
  • Shibarium hit an ATH of 418 million transactions, coinciding with SHIB's price increase.
  • Analysts predict a potential 50% rally if SHIB breaks resistance at $0.00001526.

Shiba Inu (SHIB) has experienced an increase in its burn rate, with recent data from the Shibburn tracker showing a 1,088% surge in token burns. This surge in activity has coincided with a notable increase in SHIB’s price, which has seen a nearly 6% rise in the last 24 hours, trading at $0.00001385.

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Shiba Inu Price Soars Along with Token Burns

According to the Shibburn tracker, the increase in SHIB burns began on Monday, with less than 20,000 tokens destroyed, escalating to nearly 100,000 tokens by Tuesday. This marked shift in burn activity corresponds with the introduction of a new automated burn mechanism on the Shibarium platform, which redirects a portion of gas fees into burns.

Additionally, the relationship between the heightened burn rate and the SHIB price suggests a positive market reaction to supply reduction strategies. Concurrently, the Shibarium blockchain has reached a new all-time high of 418 million transactions, potentially fueling further investor interest in Shiba Inu.

This burn activity coincides with a considerable uptick in SHIB’s market price, which has risen from $0.00001307 to $0.00001385. The price increase reflects a recovery in the crypto market and is closely tied to the token burn rate.

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Price Analysis: 50% Rally on the Horizon?

The current trading price of SHIB reflects a recovery from its lowest levels this year, propelled by both the burn mechanism and broader market trends. Analysts are eyeing a critical resistance level at $0.00001526, beyond which a 50% Shibu Inu price surge could be feasible. 

The bullish scenario hinges on the sustained demand for SHIB as it approaches critical technical milestones. Conversely, should the price fail to breach this resistance, support levels around $0.00001227 might provide a floor as market participants reassess the asset’s valuation in light of ongoing developments.

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Shytoshi Kusama’s Latest Updates

In recent developments, Shytoshi Kusama has reiterated his commitment to maintaining anonymity, emphasizing the project’s community-driven nature. Kusama’s stance on anonymity aligns with the ethos of decentralized community participation that Shiba Inu promotes. His leadership continues to focus on developing the Shibarium blockchain and enhancing the token’s utility, further strengthening the project’s market position.

Following the announcement that Shytoshi Kusama, the lead developer of Shiba Inu, prefers to remain anonymous, Lucie, the SHIB team’s marketing lead, defended his decision on X. She argued that his actions and morals outweigh the potential risks of anonymity, highlighting the team’s commitment and integrity over the past three years, despite criticisms and fears of abandonment.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.