Shiba Inu Burn Rate Surges 1538%, 34.21M Coins Removed

On Wednesday, April 9, the burn rate of Shiba Inu, a popular meme coin, surged by 1500%, with approximately 34 million coins removed from its circulating supply. This significant increase in the burn rate has sparked speculation among crypto market watchers about the potential for a SHIB price recovery, despite the ongoing market volatility and broader uncertain trends.

The meme coin has experienced a substantial decline in value, erasing over 50% of its worth since the beginning of the year. According to data from TradingView, the price of SHIB plummeted from $0.00002 to $0.00001 during this period. The recent burn data, however, has offered some optimism to the market. Official tracker Shibburn reported that 34.21 million Shiba Inu tokens were burned in the past 24 hours, resulting in a 1538% intraday surge in the burn rate.

Crypto market participants view this event as a bullish price dynamic, as economic principles suggest that a severe reduction in supply can lead to a bullish impact on price. Traders and investors are anticipating a recovery-like price trajectory as a result. To date, a total of 410.73 trillion tokens have been removed from the meme crypto’s circulating supply, with 584.36 trillion tokens still remaining in circulation. The wallet address “0x541f60e5576” was responsible for the majority of the burn, single-handedly burning 17.13 million tokens.

Despite the recent surge in the burn rate, the price of SHIB has not experienced a significant pump, trading down over 5% intraday and resting at $0.00001093. The price fell from a high of $0.00001143 in the past 24 hours, raising concerns among market participants. The weekly and monthly price charts show a dip of 10% and 12%, respectively, primarily attributable to macroeconomic factors such as trade war tensions. However, a top analyst has retained a bullish stance for the token, predicting a potential +550% upside movement for SHIB, with a target of $0.000081.

According to the analyst's forecast, the chances of a price recovery to previous highs depend on factors such as constant Shiba Inu burns and macro support for risk assets. As of now, traders and investors continue to monitor the meme coin, expecting a shift in price action in line with broader market trends. The recent burn rate surge has offered some support to SHIB, but the broader market uncertainty and macroeconomic factors continue to pose challenges for a price recovery.