Shiba Inu Sharply Reduces Burn Rate by 79%: Temporary Setback or A Signal for a New Bull Run?
After emerging as one of the leading representatives of the memecoin wave, Shiba Inu (SHIB) has attracted the attention of the community when its token burn rate dropped sharply by 79% in just 24 hours. Data recorded from blockchain monitoring platforms shows that token burning – one of the strategies to reduce supply to increase prices – is entering a “hibernation” phase.
Specifically, only 8,258,774 SHIB have been burned in the past 24 hours, equivalent to about $119.58 – the lowest number in the month so far. Notably, this activity only came from two separate transactions, raising concerns that community momentum may be slowing down.
SHIB – A dim light in the memecoin supercycle?
Amid a correction in the cryptocurrency market, many analysts still believe that a memecoin supercycle is brewing again. And if this scenario plays out, SHIB will be one of the guiding lights.
The short-term target that investors are watching is the $0.000015 area - an important resistance level that has decided the fate of SHIB many times in the past. If this level is surpassed, analysts predict that SHIB's price could head towards the $0.000035 area, marking a breakthrough growth.
However, to do that, SHIB will have to overcome the "giant supply wall" between the $0.000015 - $0.000019 price range, which currently holds about 532 trillion tokens - nearly 90% of the total circulating supply. These numbers show that any price increase is largely dependent on the behavior of the 126,200 wallets holding a large amount of SHIB.
Memecoin Overview: Fierce Competition, Potential Still Present
Despite some positive decoupling signals, the memecoin segment as a whole has experienced a 5% correction in the past 24 hours, bringing the total market capitalization of the entire memecoin market down to $72.1 billion. Meanwhile, the total cryptocurrency market capitalization is still hovering around $3.43 trillion.
Analysts believe that the new memecoin season will not be easy to return, especially as competition in this segment is getting fiercer with the emergence of new meme coins based on famous figures or Internet trends.
Long-term data shines a light
While daily token burn rates have declined, weekly data shows a positive sign: A total of 141.41 million SHIB have been burned in the past 7 days, a sharp increase of nearly 120% compared to the previous week.
This is seen as a small but significant step forward, further reinforcing the efforts to reduce circulating supply that the Shiba Inu community has been persistently pursuing. From an initial number of 999 trillion tokens, the SHIB supply has now been reduced to just 584 trillion, thanks in part to a community-driven token burn mechanism.
Conclusion: Waiting for the Big Wave
The decline in token burning activity may just be the calm before the storm, as the SHIB community remains spirited and confident in its long-term potential. In the memecoin world where things can change overnight, a tweet, a big burn, or an unexpected event can be the catalyst to get SHIB back on track.
Until then, investors should closely monitor technical resistance zones, burn rate fluctuations, and community sentiment – factors that could signal SHIB’s next breakout point.