Shiba Inu's token burning mechanism saw a sharp increase in activity over the past 24 hours, with nearly 2.7 million SHIB destroyed, according to the X account Shibburn. That represents a 492% rise from the previous day. However, the USD value of the burned tokens is negligible at around $13, suggesting that far more aggressive burns would be needed to meaningfully affect SHIB's supply dynamics.
Burns and Supply Reduction
The burning program, introduced in 2022, is designed to gradually reduce Shiba Inu's vast supply and potentially increase its value through scarcity. According to the source, over 410.8 trillion tokens have already been sent to a null address, with Vitalik Buterin contributing a significant portion of that figure.
Despite the recent spike, the burn rate remains small in dollar terms. The popular meme coin has had a tough year so far, with its price collapsing by nearly 30% since January 1. Investor interest in the token has also cooled significantly, which could weigh on any potential rebound.
Shibarium Activity Jumps
Another factor that could help SHIB recover some of its losses is a potential uptick in Shibarium's activity. Daily transactions processed on the layer-2 scaling solution have exploded by roughly 370% in the past 24 hours, reaching 7,300. Still, this is nowhere near the levels seen months ago and is unlikely to be a major bullish catalyst.
Price Outlook
There has been little commentary on SHIB lately, with Crypto With Gopal emerging as one of the few analysts to offer a forecast. The X user suggested the meme coin has printed a falling wedge formation as the price consolidates near $0.00000502, while buyers look to defend support.
The analyst said a breakout above the descending resistance could spark a bullish momentum shift, setting $0.0000060 as an upside target and identifying $0.0000047-$0.0000048 as a support zone. "SHIB bulls are watching for a breakout – meme coin momentum could return," he concluded.
Meanwhile, the amount of Shiba Inu stored on crypto exchanges remains relatively low at just north of 87 trillion coins, which supports the bullish perspective since it reduces immediate selling pressure.
