Many investors in the market did not expect the unexpected price growth of Shiba Inu (SHIB) in the last 24 hours. Nevertheless, this meme coin managed to experience a 20% growth against the expectations of the bears. The increase in the price of Shiba also had another consequence; Increasing the rate of token burning. Shiba token burning rate increased by 600% compared to the previous day.
According to Valx and quoted by U.today, information from the Shibburn service shows that more than 70 million Shiba tokens have been burned since the start of the price rally. An increase in the number of tokens burned during extreme price fluctuations is a natural and expected event.
Shiba’s analysis confirms that with the resurgence of the market, whales and long-term small holders participate more actively in the market, which itself has increased the activity of the network. This activity growth causes an increase in Shiba’s token burning rate.
At the time of writing, Shiba’s price is still bullish and shows no sign of going back down. The possible reason for such an increase comes back to a series of positive news about the progress of the Shibarium project and listing in some major exchanges.
From the point of view of technical analysis, today’s price jump was not so unexpected. The currency spent four days around its 200-day moving average, which could be considered a period of accumulation before breaking to the upside.
If the current price momentum continues, we will most likely see a steady increase in token burning volume on the Shiba network. In order for token burning to have a significant effect on the price, at least 100 million SHIB tokens must be burned daily.
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