Shiba Inu (SHIB) Price Prediction: Will SHIB Rise After the Recent Surge in Its Token-Burning Activity?

Shiba Inu's (SHIB) price has remained steady, largely due to a recent surge in its token-burning activity.

Shiba Inu (SHIB) has remained stable despite a recent surge in its token-burning activity, which saw the burn rate skyrocket by nearly 140,000% over the past 24 hours. This activity resulted in the permanent removal of over 96 million SHIB tokens from circulation.

While this large-scale burning effort hasn’t yet significantly impacted SHIB’s price in USD terms, it does suggest a trend that could decrease the token’s overall supply, potentially leading to higher value if demand remains constant or grows.

Interestingly, this massive burn came from a single transaction, originating from a wallet that had been inactive for more than five months. The wallet, which appears to have received funds from Coinbase on multiple occasions, suddenly came back online to burn a large amount of SHIB.

This action might signal that some long-term holders or larger investors are beginning to actively reduce the circulating supply, possibly in anticipation of future price increases due to the reduced availability of tokens.

Over the past year, SHIB has shown resilience, increasing by 72% while the top 100 crypto assets rose by an average of 58%. SHIB also boasts a negative yearly inflation rate of -0.01%, indicating that its supply is gradually decreasing.

This decrease in supply, coupled with SHIB’s performance and scarcity, could contribute to upward pressure on its price over time. However, SHIB’s price movements will also be influenced by broader market conditions and demand for the token.