Shiba Inu (SHIB) Burn Rate Hits 6750%: Will The Price React Accordingly?

The Shiba Inu community has once again seen a significant spike in burn rates, triggering excitement among investors. According to recent data, SHIB's burn rate skyrocketed 6750% in just 24 hours, boosting market speculation.

This sudden surge has sparked optimism among SHIB community members, with some speculating a significant rally. Given the bullish atmosphere, will SHIB hit $0.01 soon?

Shiba Inu Burn Rate Explosion Fuels Investor Optimism

Shibburn data shows that over 27 million SHIB tokens were burned, marking a 6750% surge within a day. This massive reduction in supply has sparked renewed hope among traders and long-time investors.

The law of supply and demand plays a significant role in this. With fewer tokens available and steady demand, price increases are possible. As more SHIB tokens are burned, many investors are banking on this deflationary process to increase prices.

Further, weekly data shows that about 58 million SHIB tokens were burned over the past week. This consistent burn pattern supports the overall optimism surrounding the coin's long-term potential.

Moreover, Shiba Inu's price has moved upward in previous burn events, so a price surge in SHIB is possible. In addition to the increase in burn rate, recent developments within the Shiba Inu ecosystem have created even more positive momentum.

Earlier reports showed that Shibarium, SHIB's Layer 2 scaling solution, has seen a boost in activity. According to Shibariumscan'sdata, activities within the ecosystem rose from 3,690 on October 17 to 324,590 on October 19.

This uptick in usage points to the growing interest and demand for the Shiba Inu ecosystem, which adds more bullish energy to the market. This increase in transactions could help the protocol compete with Ethereum-based Layer 2 networks like Optimism, Base, and Arbitrum.

$0.01 Price Target - Is It Realistic?

Despite positive developments, SHIB has faced some turbulence in price action. The coin has dropped by about 1.80%, trading around $0.00001778.

This dip in price occurred during a broader market pullback, affecting many cryptocurrencies.

However, the SHIB community continues to focus on the long-term $0.01 price goal. LUCIE, Shiba Inu's marketing lead, shared her thoughts on the possibility of SHIB reaching this target earlier this year.

In March, she revealed that she's been holding SHIB since 2021 and remains confident that the token can hit $0.01.

This is my opinion, not financial advice.

- (@LucieSHIB) March 5, 2024

While the journey may take time, these continuous burn events and growing ecosystems suggest the coin is bullish.

Meanwhile, market data for SHIB futures reveals some mixed signals. According to Coinglass, SHIB's open interest in futures contracts dropped by 5.9% to $52.65 million. Furthermore, the volume in derivatives trading also fell by nearly 22%, landing at $106.71 million.

These figures reflect the uncertainty surrounding the short-term price action. However, the long-term outlook remains bright, especially given the ongoing burns and ecosystem growth.

CryptoQuant data shows that whales have been buying lots of SHIB tokens. On October 21, these whales took 1.2 trillion SHIB tokens off CEX, worth around $21.7 million.

This huge purchase could boost SHIB's price, as there is no major selling pressure in the market right now.

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