The broader crypto market is currently in a bullish state, and popular meme coin Shiba Inu (SHIB) may also be enjoying some of the spillover.
The broader crypto market is currently in a bullish state, and popular meme coin Shiba Inu (SHIB) may also be enjoying some of the spillover. That is, with the likes of Bitcoin recently crossing the psychological $100,000 mark and Ethereum holding steady above $3,600.
In the same spirit, SHIB has defied all expectations to record a notable price surge despite seeing its token burn rate decline by double digits.
SHIB’s price recently broke through $0.00003009, meaning that it has now gained over 11.7% in the past seven days. On the monthly chart, the coin has also seen a massive 64.8% increase in its value from the previous, while it has also added more than 246% in the past year.
As mentioned earlier, SHIB’s price surge is coming at a time when its burn rate has dropped by 84%. That is, within the past 24 hours alone where only 62 million SHIB tokens were burned.
For clarity, burn rate is a mechanism that is used to boost the value of a token by reducing its supply. So, like any other token, the connection is usually that, the higher the burn rate, the faster the value of the token rises.
Surprisingly, however, this has not been the case with SHIB recently. Its burn rates have drastically reduced in comparison to earlier ones.
Despite this, though, SHIB continues to show great strength, and its recent price surge may be linked to strong investor demand and growing optimism within its community.
Burning tokens has always been a key strategy for Shiba Inu to increase scarcity and potentially drive up prices. However, the recent decline in burn activity has now raised concerns about its impact on the token’s value. Nonetheless, the coin’s performance has shown that sometimes, when market demand is very high, concerns over reduced burns may not exactly pose an immediate problem.
Looking at it, two main factors appear to be contributing to Shiba Inu’s recent price performance. They are market sentiment and community backing.
If nothing else, its 246% surge over the last year shows its ability to maintain its relevance over a long period. That is especially true considering how volatile the crypto landscape can be.
Moreover, analysts also have high hopes that if SHIB is able to maintain its current momentum, it could reach new heights even before 2024 runs out.
At its current rate, Shiba Inu is edging closer to a critical resistance level of $0.000037. Should it break past this point, experts believe it could potentially rally toward $0.00005 over the next few months.
Besides, this positive outlook is not exactly different from what the broader market is also signaling. Major cryptocurrencies like Bitcoin and Ethereum have also shown seriously bullish patterns to suggest that good times are coming to the crypto space in general.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
