The Shiba Inu (SHIB) community has recently ramped up its token burning efforts, with 281.88 million SHIB tokens removed from circulation on Tuesday alone. This has resulted in a staggering burn rate of 7,911.12%, according to data from Shibburn. These community efforts have sparked speculations of a SHIB price rally.
Shiba Inu Burn Rate Surge.
However, despite this significant reduction, the current circulating supply of the meme crypto remains at 583.53 trillion tokens, out of an initial supply of 1 quadrillion. Earlier, on Monday, the wallet address “0xa9d…d3e43” gained considerable attention for its role in the burn activity.\
This wallet was responsible for burning 277.58 million SHIB tokens within a 24-hour period, contributing to the burn frenzy and raising speculation of a potential price rally. As of Tuesday, the total burned SHIB now stands at 410.73 trillion tokens, a milestone that is being closely watched by investors.
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Token burns are generally seen as a bullish signal, as reducing the total supply can lead to increased scarcity, theoretically supporting price increases. However, despite the massive token burning, SHIB price has struggled amidst broader market volatility, with the meme coin witnessing losses.
Monday saw an even more remarkable spike in the burn rate, which surged by 14,575.02% on Shibburn. This surge corresponded with the removal of 279.65 million tokens from the market. Also, Shiba Inu price climbed over 6% amid the token burn efforts.
SHIB Price to Rally?
On Monday, Shiba Inu price surged owing to the increase in burn rate, however, it struggled amid the volatile market today. At press time, the SHIB value stood at $0.00001814, dropping 1.04% but this coincided with a gradual uptrend as it extended toward the “green” territory.
While the price of SHIB remains volatile, the ongoing token burns have sparked optimism among investors who anticipate that a reduced circulating supply could lead to a rally in the near future. However, whether this translates into sustained price growth remains to be seen.
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