What This Means for SHIB

• Shiba Inu burn rate surged over 14,000% in 24 hours, with 32 million tokens burned, boosting community discussions.
• Shiba Inu’s supply reduction relies on Shibarium, a layer-2 solution that burns a portion of transaction fees permanently.

According to Shibburn data, the burn rate for Shiba Inu (SHIB) tokens has surged by 14,136.14% over the last 24 hours, resulting in the elimination of 32,379,391 tokens. However, this short-term rise comes after a week of sharply lower overall burn rates.

Over the last seven days, the burn rate has plummeted by 75.66%, with only 65,740,411 tokens burned. This substantial volatility has elicited conflicting comments from the Shiba Inu community, as token burning is critical for reducing the massive supply of 589 trillion SHIB tokens.

HOURLY SHIB UPDATE$SHIB Price: $0.00001313 (1hr 0.45% ▲ | 24hr -0.33% ▼ )
Market Cap: $7,738,051,191 (-0.34% ▼)
Total Supply: 589,271,195,560,663

TOKENS BURNT
Past 24Hrs: 32,379,391 (14136.14% ▲)
Past 7 Days: 65,740,411 (-75.66% ▼)

— Shibburn (@shibburn) September 17, 2024

Shibarium Seen as Key to Long-Term Supply Reduction Despite Price Stagnation 

Despite recent increases in the burn rate, the SHIB token price has been unable to gain traction. At the time of writing, SHIB was trading at around $0.00001316, down 1.00% over the last 24 hours.

The coin has been in a consolidation period for several weeks with no price movement, keeping investors waiting for a potential breakthrough. This flat price behavior adds to the uncertainty, even when the token burn rate varies dramatically.

Beside that, as we previously reported, the Shiba Inu marketing lead recently stated that the development team cannot directly change the token’s supply, despite persistent requests from some community members to do so.

The team believes that the only effective strategy to reduce SHIB supply is to encourage more consumers to engage in the Shibarium Layer-2 solution.

Shibarium permanently burns a portion of the transaction fees, reducing the token’s circulating quantity over time. This strategy is regarded as the most sustainable way for long-term value growth.

On the other hand, according to CNF, a popular analyst highlighted by CNF identified a technical pattern known as a “Falling Wedge” in the SHIB chart.

This pattern, according to the analyst, indicates the possibility of a significant price breakout. If the breakout holds, SHIB might see a price increase of up to 480%, which has fuelled newfound hope and excitement in the community.