According to the Shiba Inu (SHIB) burn rate tracker Shibburn, the project’s burn rate spiked by 139,103%.
The data shows that 96.63 million SHIB tokens were incinerated in the last 24 hours, with one transaction burning over 96 million tokens.
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Factors Influencing SHIB’s Price and Burn Rate
The sudden burn rate spike could be due to increased activity within the SHIB ecosystem. It could also be due to a low number of burns over the last few days and a sudden high token burn in the previous 24 hours.
Will SHIB Hit $0.00002 Following the Burn Spike?
Shiba Inu’s (SHIB) price has seldom rallied on token burns as the number of tokens destroyed is minuscule compared to the 589 trillion tokens in circulation. While the burn rate increased by more than 139,000% in 24 hours, the asset has rallied by only 0.2% in the same time frame.
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Future Price Predictions
According to CoinCodex’s analysis, SHIB could surge to $0.00003 on Sept. 4, 2024, a rise of about 114% from current levels. The platform, however, does not anticipate prices to hold, predicting a correction back to current levels soon after.
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The only time burning SHIB tokens has led to a price spike is when Ethereum co-founder Vitalik Buterin burned nearly half of the asset’s supply. Buterin received half of SHIB’s entire supply upon launch and decided to burn 90% of the tokens he received.
A similar burn could lead to another 2021-like price rally for the popular memecoin. The SHIB team is reportedly working on a new burn mechanism, which may say will burn trillions of tokens yearly. Such a magnitude of burns could positively impact SHIB’s price.