TLDR
- Shiba Inu burn rate surged over 1500% in 24 hours with 13 million coins removed from circulation
- Weekly burns totaled 527 million tokens, causing a 465% spike in the weekly burn rate
- SHIB price shows recovery, trading at around $0.000013 with 2% daily and 8% weekly gains
- Open interest increased by 8.9%, with traders committing 9.18 trillion SHIB ($117.82 million)
- Analysts project potential price increases, with one forecasting a possible 500% rally to $0.000081
The recent performance of Shiba Inu has caught the eye of crypto traders and investors alike. The second-largest meme coin by market cap has shown signs of recovery after facing downward pressure in recent weeks. This comes as burn rates and trader interest show marked improvements.
The Shiba Inu burn rate has jumped by an eye-catching 1500% in a single day. This means about 13 million SHIB tokens were removed from circulation in 24 hours. The massive burn was mainly due to a single wallet address that removed 12.13 million tokens from the supply.
Looking at the weekly numbers, the burn rate is even more impressive. Data shows that 527.54 million SHIB tokens were permanently removed from circulation over the past week. This represents a 465.59% increase in the weekly burn rate.
These burns directly affect the token’s supply. As of now, Shiba Inu has a circulating supply of 584.34 trillion tokens. To date, 410.72 trillion tokens have been burnt, which is a major reduction from the original supply.
The token burn mechanism works by sending coins to a null address. This permanently removes them from circulation. The goal is to make SHIB more scarce over time.
The price of SHIB has responded positively to these developments. Currently trading at around $0.00001328, the token has gained about 2% in the past 24 hours. Over the past week, SHIB has climbed by nearly 8%.
The price has bounced back after recently testing lower support levels. Some traders were concerned when SHIB briefly fell below the $0.000010 mark. However, the token quickly recovered and has been trending upward since.
Higher levels to come
Market analyst Javon Marks believes that SHIB could reach much higher levels. According to his analysis, the token could potentially rally to $0.000081. This would represent a 500% increase from current prices.
The analyst points to a breakout that occurred in late 2022 and early 2023. SHIB has maintained this breakout pattern, which could support the case for higher prices ahead. Technical indicators also show a hidden bullish divergence in longer timeframes.
Futures markets are showing increased interest in SHIB as well. Open interest in SHIB derivatives has grown by 8.9% in the past 24 hours. Traders have opened positions totaling 9.18 trillion SHIB, valued at approximately $117.82 million.
Huge jump in derivatives volume
The derivatives market volume for SHIB has also seen a huge jump. Volume increased by 338.45% to $167.71 million. This shows growing market interest in the token.
Exchange data reveals that Gate.io accounts for the largest share of open interest. The exchange represents 73.47% of all open positions, with 6.76 trillion SHIB valued at $86.56 million. Other exchanges with high interest include OKX with 1.03 trillion SHIB and Bitget with 874.55 billion SHIB.
Some analysts are using technical indicators to make price predictions. The Bollinger Bands indicator suggests SHIB might be oversold or due for a price reversal. Based on this, some project a possible 63% breakout in the near future.
Market observers note that the next few days will be critical for SHIB’s recovery. They suggest that stabilizing the price through continued token burns could help sustain the current upward trend.
The combination of reduced supply through burns and increased trader interest could create favorable conditions for SHIB’s price in the coming weeks. However, as with all cryptocurrencies, market conditions can change rapidly.
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