Shiba Inu Burn Rate Spikes To Push Price Up

The Shiba Inu ecosystem has witnessed an increase in SHIB burning endeavors in the 24 hours leading up to Christmas day.

Shiba Inu (SHIB) burn endeavors have seen a slight uptick in the 24 hours leading up to Christmas day, according to the latest burn tracking figures. The meme coin has witnessed a 41.87% increase in the number of Shib tokens burned when compared to the previous 24-hour timeframe.

The Shiba Inu burn tracker, Shibburn.com, shows that 7,309,654 SHIB tokens were burned in the past 24 hours. These tokens were burned in a total of four transactions, with varying amounts ranging from 6,387 SHIB tokens in one transaction to 4,326,195 SHIB tokens in another transaction.

The SHIB burn endeavors come at a time when the meme coin’s price has experienced a 3.5% uptick in the past 24 hours, indicating a bullish Christmas Eve and Christmas Day for SHIB. This also opens up the possibility of the SHIB price beginning to regain a steady bullish move from here.

SHIB burns play an important role in Shiba Inu’s market dynamics by introducing a deflationary element to its supply, which can positively impact its value over time. However, SHIB burns serve multiple purposes within the ecosystem that extend beyond merely reducing supply.

For example, SHIB burn activity is an important indicator of activity among Shiba Inu traders. High periods of SHIB burns or spikes in SHIB burns are often accompanied by an increase in activity on the network, which is also tied to price increases. While SHIB burns do not guarantee a strong price surge, this correlation has made analysts use them to gauge interest surrounding the meme cryptocurrency.

Furthermore, SHIB burns are tied to projects on the Shiba Inu ecosystem, like ShibaSwap and Shibarium. In the case of Shibarium, a portion of the BONE gas fees charged on the layer-2 network is converted to SHIB tokens, which are then burned.

At the time of writing, Shiba Inu is trading at $0.00002305, up 3.5% in the past 24 hours and down 10.71% in the past seven days. A continued increase in SHIB burn activity could contribute to a steady reversal into price gains in the weekly and monthly timeframes.