The Shiba Inu community witnessed a major burn rate spike, yet despite the decreased supply, caution is advised by security experts.
Shiba Inu’s (SHIB) burn rate surged nearly 254,000% over the last 24 hours, removing over 5.64 billion SHIB SHIB $0.000014 24h volatility: 3.7% Market cap: $7.97 B Vol. 24h: $257.79 M tokens from circulation. According to Shibburn, a platform tracking token burns, this drastic reduction in supply has fueled widespread speculation about a potential rally in SHIB’s price.
Historically, increased token burns reduce market supply, theoretically boosting token value. Investors have particularly noticed the notable burn surge in October, where SHIB saw a 158% increase in the burning rate, with a total of 6.13 billion tokens removed from circulation.
The highest burn was led by a wallet identified as “0xbb3…9d8a1”, responsible for burning 5.58 billion tokens in one day. This latest burn activity brings the total SHIB burned since launch to a whopping 410.73 trillion tokens, reducing the circulating supply to around 583.59 trillion. However, despite the burn rate’s rapid acceleration, SHIB’s price is still facing downward pressure, recently trading over 7% lower at $0.00001729.
Meanwhile, SHIB futures data reflects a cautious market mood, with open interest down 12% to $46.76 million.
Warning amid Burning Frenzy
Amidst the frenzy, Shiba Inu security advocate Susbarium, an X account known for cautioning the community on project safety, has issued a critical advisory. According to Susbarium, investors should exercise caution, particularly around token burns that may be strategically implemented to draw attention.
While he clarified that these burns are not necessarily scams, he urged the community to conduct comprehensive research before making investment decisions. He highlighted key areas of focus, including token allocation, project goals, and tokenomics, as essential points for investors to review.
Backing the warning, SHIB’s lead developer, Kaal Dhairya, reposted Susbarium’s post. He also encouraged holders to make level-headed decisions rather than being swayed by token burn-induced hype.
Bullish Forecasts for Q4 2024
Despite the drop, some Shiba Inu analysts believe that the asset could rally in the coming months, with predictions that SHIB might even reach $0.000081. Anticipation around the upcoming US presidential election is adding to the optimism, with many experts forecasting an altcoin rally in the final quarter of the year.
Shiba Inu currently holds a market cap of $10.19 billion, solidifying its position as the second-largest meme coin after Dogecoin DOGE $0.28 24h volatility: 6.1% Market cap: $42.85 B Vol. 24h: $5.24 B . Over the past year, SHIB’s market cap has more than doubled, though it remains only half of its peak value of $21.16 billion, reached in March. Despite gaining over 125% year-over-year, SHIB still trades 80% below its all-time high of $0.00008845, set in October 2021.
Lucie, Shiba Inu’s marketing lead, recently announced plans for a new upgrade focused on the Shiboshis NFTs on the Shibarium blockchain.
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