As per the data on Shibburn, Shiba Inu’s (SHIB) burn tracker, the project’s burn rate has spiked by 499,363.34%, with over 264 million tokens burnt in 24 hours. SHIB’s burn portal launched in April 2022 and has incinerated thousands of tokens ever since. The project’s burn rate took a hit in mid-2023, most likely due to a drop in network activity. Moreover, the asset’s price has struggled for most of this year, which may have led to less user interest.
The latest burn spike is due to one transaction in particular, which destroyed almost 261 million SHIB tokens. The number of tokens burnt in the last few days was low, and a sudden increase in tokens burnt may have caused the burn rate to spike.
Last week, SHIB’s burn rate spiked 47000% when one user burned almost 27 million tokens.
Will Shiba Inu’s price rise after the burn spike?
Despite the rise in burn rate, SHIB’s price has not budged. The asset has fallen 0.2% in the daily charts and 2.9% in the weekly charts. Moreover, the token is down by 5.6% over the last 14 days. Nonetheless, the memecoin is up by 7.7% over the previous month.
Shiba Inu’s burn rate has seldom led to price movements. Even last week’s 47000% burn rate spike did not lead to a price increase. The lack of price movements from SHIB’s burn rate is likely due to the massive circulating supply. The number of tokens burnt is insignificant compared to SHIB’s 589 trillion supply. The project will need to remove a more significant number of tokens for the burn rate to impact the asset’s price.