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The Shiba Inu (SHIB) burn rate witnessed an explosive spike over the past 24 hours. Within this period, the SHIB burn rate surged 28,554%, according to Shibburn data.
29,440,541 SHIB permanently destroyed
In the last 24 hours, a total of 29,440,541 SHIB tokens were sent to dead addresses that no one can access.
This marked a 28,554% increase in burn rate and contributed to a total burn of 410,752,751,924,444 SHIB from the circulating supply.
Burns are community-driven or automated to combat inflation and build long-term value. Sending tokens to dead wallets reduces the total supply, thereby creating scarcity. In theory, it increases the value of remaining tokens if demand grows.
Notably, the Shiba Inu ecosystem has seen similar spikes recently. In one case, over 9.7 million SHIB were burned in 24 hours, slashing the total supply.
In another instance, the SHIB burn rate surged 27,014.16%, with 43,486,236 SHIB permanently removed from circulation. These events are often tied to community initiatives, whale actions or Shibarium milestones.
Typically, higher burns signal community commitment to deflation, which can spark optimism and attract buyers.
Previous burn rate spikes have coincided with price rallies, like SHIB climbing between 4-5% to test $0.00002.
SHIB price eyes breakout
The latest SHIB burn spike is bullish news for SHIB holders, highlighting aggressive supply reduction efforts.
The SHIB meme coin is currently in green and eyeing a potential price breakout. Some analysts have predicted that SHIB could experience a bullish move, with gains of up to 670%.
As of press time, SHIB is valued at $0.00001049, up 2.45% over the past 24 hours. The trading volume also surged more than 79% to $175.6 million, implying increased market activity.
Another key signal of improved momentum in the Shiba Inu ecosystem is declining exchange inflows.
U.Today recently reported that exchange inflow metrics fell more than 62% in just 24 hours. This translated to a net decline of about 1.008 billion SHIB entering exchanges.
Reduced exchange inflow indicates that fewer tokens are being prepared for sale. It is a sign that holders are growing more optimistic about a future price recovery.
The SHIB reduction on exchanges, combined with the spike in burn rate, may help fuel the SHIB price to new highs.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team