Shiba Inu Burn Rate Soars 487% In A Day: What Is Going On?

Shiba Inu SHIB/USD has gained traction amid rising burn rates, sparking optimism among technical analysts about bullish momentum for the token.

What Happened: According to Shibburn data, the burn rate for SHIB surged by 486.8% over the past day, with 5.9 million SHIB coins permanently removed from circulation.

A single transaction alone accounted for around 2 million burned tokens.

Shytoshi Kusama, the pseudonymous lead developer of Shiba Inu, recently noted that while burning 99% of SHIB's supply seemed improbable in the past, it now appears achievable due to increasing collaborations within the Shibarium ecosystem.

Kusama urged more projects to adopt Shibarium's tech stack to accelerate the burn rate

Also Read: Crypto Analyst Sees Shiba Inu Surging More Than 2,000% In Coming Rally

Why It Matters: Despite the spike in the burn rate, data from IntoTheBlock shows a 48% decline in large transaction volumes and a 24.6% drop in daily active addresses.

Transactions exceeding $100,000 fell from 939 to 626 in a single day.

On the other hand, Shibariumscan recorded a rise in daily transactions, increasing from 4.75 million on Nov. 23 to 4.77 million on Nov. 24.

DefiLlama data highlighted that Shibarium's total value locked (TVL) reached an all-time high of $4.76 million.

Benzinga Technical Analysis shows a relative strength index (RSI) of 39 for SHIB, suggesting the token is currently oversold, which could lead to a price rebound.

Shiba Inu's 50-day Simple Moving Average (SMA) has surpassed its 100-day and 200-day SMA, signaling a bullish trend and potential buying opportunities.

Price Action: Shiba Inu is trading at $0.00002564 at the time of writing, up 2.5% over the past 24 hours.

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