The Shiba Inu burn rate is on the rise once again after an incredible day of activity, jumping more than 900% in a 24-hour period. At the same time, the price of the Shiba Inu native token SHIB has been rallying, suggesting a correlation between the two.Market Cap: $5,581,942,789 (5.02% ▲)
Total Supply: 589,301,687,946,655Past 24Hrs: 33,873,020 (903.38% ▲)
Past 7 Days: 111,170,496 (-78.47% ▼)
— Shibburn (@shibburn) January 9, 2024
SHIB price starts to retrace | Source: SHIBUSD on Tradingview.com
Can SHIB Price Continue To Rally?
Coincidentally, the SHIB price has seen an upturn following the rise in the Shiba Inu burn rate. This is an interesting turn of events given the fact that the price of the meme coin has not shown a similar correlation to the burn rate over the last few months.
Toward the end of 2023, the SHIB burn rate had surged tremendously but the price did not follow this upside until now. This suggests that the bull sentiment returning to the market could be driving both the price and the rate at which investors are willing to burn their SHIB tokens in a bid to reduce the circulating supply.
If this correlation holds, then a continuous increase in the burn rate could spell good news for Shiba Inu holders. However, there is still the matter of altcoins following the Bitcoin price trend which could hinder the price recovery if BTC’s price were to fall.
At the time of writing, SHIB is trading at $0.000009433, up 4.7% in the last day but down 13.54% in the last week, according to data from CoinMarketCap.
Featured image from Watcher Guru, chart from Tradingview.com
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Author: Scott Matherson