Shiba Inu (SHIB), the popular dog-themed meme coin, experienced a 588.22% explosion in its burn rate over the past 24 hours, burning nearly 23 million SHIB tokens and applying fresh deflationary pressure on the asset.
According to data from Shibburn, the official burn tracker for the Shiba Inu ecosystem, a total of 22.94 million SHIB were removed from circulation on Sunday. This brings the total number of burned tokens to 410.74 trillion, while the current circulating supply stands at 584.45 trillion.
What’s Driving the Burn?
The sharp spike in SHIB burns occurred despite a noticeable decline in transactions on Shiba Inu’s Layer-2 blockchain, Shibarium. A portion of the transaction fees collected on Shibarium is allocated for automated burns, effectively reducing the supply with each on-chain transaction.
The recent surge in the burn rate could indicate community-led burn initiatives or manual burns by large holders seeking to reduce the token supply and potentially boost price action through scarcity.
Technical Indicator Flashes ‘Buy’ as Open Interest Rises
On the technical analysis side, TradingView’s Bull Bear Power indicator has turned bullish, flashing a “Buy” signal for SHIB. This indicator tracks the strength of buying versus selling pressure and is often used to detect trend reversals or breakout setups.
In the derivatives market, Open Interest (OI) in SHIB futures contracts increased over 2% in the past 24 hours, according to Coinglass. This reflects a growing appetite for SHIB exposure among traders, although the majority of Binance users remain positioned short, suggesting skepticism or hedging strategies against potential downside.
SHIB Price Still Lags, But Conditions May Favor Upside
At the time of writing, Shiba Inu is trading at $0.00001453, marking a 1.73% gain in the past 24 hours. However, the asset remains down 31% year-to-date, indicating that despite deflationary moves and bullish signals, SHIB still faces broader market resistance.
The combination of rising deflationary pressure, positive technical indicators, and increased derivatives participation could serve as a foundation for a near-term recovery if sentiment shifts and retail demand picks up.
What’s Next for SHIB?
While SHIB’s price movement has remained relatively subdued, the surge in the burn rate and bullish technical outlook suggest the possibility of a momentum shift. Traders and long-term holders will be watching closely to see if these signals translate into a sustained price rally, or if bearish forces maintain the upper hand.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
