Shiba Inu burn rate jumps 972%, boosting scarcity and driving price increase.
Shiba Inu (SHIB) burn rate has made cryptocurrency headlines as the daily burn rate grows by 972%. It came at the same time as the 3% uptick in the token’s price over the past 24 hours.
Shiba Inu uses the burning mechanism to decrease total token supply in an attempt to create scarcity with the hope of increasing long term value.
In fact, the burn rate of SHIB tokens spiked during the last 24 hours with data from Shibburn indicating that 5,441,220 SHIB tokens were burned. SHIB is up 2.92 % on day and is valued at $0.000022 as of the last update, 4% up in the week.
Shiba Inu Struggles Amid Negligible Crypto Market Recovery
It is in line with a negligible recovery in the broad cryptocurrency market. Despite that, Shiba Inu is yet to break through crucial resistance levels, which means it will need further momentum to sustain an upward trajectory.
At the time of writing, SHIB trades within a range defined by its daily Simple Moving Average of 200 and 50 SMA at $0.0000187 and $0.0000259, respectively. A continuation in the recovery would be aided by a break above $0.0000223 and further resistance is found at $0.000024.
A decisive move above the daily SMA 50 may yet be the start of recovery for Shiba Inu, taking its price up to $0.00003 or higher to $0.000033. But the token has fared poorly in December, with a monthly slide of 18.59% which is its first decrease since September’s rally.
With the end of the year, everyone is waiting to see if Shiba Inu can continue its recent momentum and carve out a stronger presence in the crypto landscape.
