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Shiba Inu (SHIB) Shows 540% Burn Increase as Breakout Becomes Possibility

Mon, 01/30/2023 - 09:15
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Arman Shirinyan
Shiba Inu network showing significant recovery after dull performance over weekend
Shiba Inu (SHIB) Shows 540% Burn Increase as Breakout Becomes Possibility
Cover image via stock.adobe.com

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The burn rate of the prominent meme coin is on a solid rise after a calm weekend trading session. According to the Shibburn tracker, the asset saw a 405% rise in the amount of burned tokens in the last 24 hours — though the total amount of destroyed tokens is relatively low.

As the most relevant data suggests, users have sent more than 20 million tokens to the dead-end wallet in the last 24 hours, but the overall number should grow even higher as the day goes by.

Shibburn data
Source: Shibburn

Traditionally, Shiba Inu's burn rate rises after the weekend trading session, as the overall activity of the network is far lower when traditional markets are closed. However, the burn rate itself might not be tied to the performance of the token on the market.

Most of the burn volume is tied to network activity and the popularity of SHIB among retail investors, as they provide funds that merchants later use to increase the amount of burned Shiba Inu.

Market performance

The rise of the overall burning volume of SHIB could also be tied to the potential breakout that might happen if the buying power returns on the market since the token has not retraced from the local resistance level. Instead, it has been consolidating around it for the last few days, which might hint at the high resilience of the asset.

Unfortunately, SHIB could not break through the aforementioned resistance level since noteworthy profit-taking took place on the market as soon as the token reached the three-month high. The on-chain data suggested that most of the pressure came from whales and large retail investors.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.