- Shiba Inu’s burn rate jumped 2000%, removing 20 million tokens from circulation.
- Analysts are watching to see if this burn rate increase will lead to a price surge for SHIB.
The Shiba Inu(SHIB) community is buzzing after a massive spike in the token burn rate. On Tuesday, the burn rate soared by 2000%, eliminating a significant chunk of SHIB tokens from the circulating supply. This has sparked speculation about whether SHIB’s price will finally experience a much-anticipated pump.
Will Burning More Tokens Lead to a Price Increase?
According to Shibburn’s data on April 15, the Shiba Inu burn rate skyrocketed by 2061.22%. This corresponds to 20.83 million SHIB tokens being sent to a “dead” address, effectively removing them from circulation forever. This burn mechanism is intended to reduce the total supply of SHIB, which some believe will drive up its value.
Meanwhile, Wall Street expert “Wallstreetbets” on X stated that “Despite burns, SHIB supply remains unchanged. In the world of crypto, size doesn’t matter: it’s the thought that counts,” sparking some unease among investors.
According to CoinMarketCap’s latest data, the circulating supply was 584.37 trillion tokens at the time of reporting. SHIB‘s price is at $0.00001193, down 3.4% despite the burn rate surge. The meme coin fell from an intraday high of $0.00001239, even hitting a bottom of $0.00001182.
Despite the price dip, SHIB Knight, a well-known member of the Shiba Inu community, posted on X that a “new pump wave is loading.” He noted that breaking above $0.00001238 could trigger a bull run. Traders and investors are closely monitoring the coin for further price movements, and are hoping for the SHIB Knight’s prediction to come true.
A recent analysis also revealed a decline in daily active addresses on the Shiba Inu network, suggesting reduced activity that could impact the price. The question remains: if SHIB drops back to its 2023 lows, would it be a good buying opportunity? This situation has many investors divided, unsure of their next course of action.
For investors seeking high-risk, high-reward opportunities, the answer might be yes. Despite short-term macroeconomic uncertainty, many believe the cryptocurrency market will be in a stronger position by 2029, potentially benefiting meme coins like Shiba Inu. A pro-crypto stance from the US government, coupled with friendly regulatory policies, could further boost the market.
Even if SHIB falls to $0.000006 in 2025, it has the potential to reach new all-time highs in the future. SHIB investors should be prepared to potentially lose their entire investment, but they also have the chance to see gains of 10x or more if they can withstand the volatility. This potential gain is what makes SHIB an interesting asset for many investors.
However, macroeconomic factors could trigger a significant price decline. While trade war concerns have eased, uncertainty about a possible US recession remains. Recent economic data suggests a sharp economic downturn, adding to the volatility in the market. The complex interplay between these factors makes it difficult to predict Shiba Inu’s future price movements.