Shiba Inu (SHIB) Records A 3.348% Burn Rate Surge

Shiba Inu (SHIB) recorded a 3.348% Burn Rate spike (Photo; Doc. Coinmarketcap)

JAKARTA - Shiba Inu (SHIB), one of the most popular meme coins in the crypto market, has again caught the eye after its burn rate jumped dramatically to 3,348%. Recent data show that about 7.8 million SHIB tokens have been burned, sparking optimism that the price of SHIB may be heading to the level of 0.00002 US Dollars (Rp0.31) in the near future. However, is this burn strategy strong enough to push the price of SHIB higher?

The burn strategy on cryptocurrencies, including Shiba Inu, aims to reduce total supply and make tokens rarer. Since its launch, about 41% of the total SHIB supply has been burned from an initial 999 billion tokens. In the latest movement, 280 million SHIBs have been burned by September as an effort to anticipate market volatility.

Data from Shibburn shows that this week, 7.8 million SHIBs were burned, leading to a jump in the burn rate of up to 3.348%. Although this strategy often increases token value by making it rarer, SHIBs still cannot completely be separated from the broader market decline trend led by Bitcoin (BTC). At the time of writing, SHIBs are trading at the level of 0.00001329 US Dollars (Rp0.20), approaching a critical support level of 0.000130 US Dollars (Rp0.20).

SHIB's position is currently at a critical point. If prices are able to hold above the support level of 0.0000130 US Dollars (Rp0.20), the potential increase to 0.00002 US Dollars (Rp0.31) is still open. However, if the selling pressure continues and SHIB fails to maintain that level, about 350.000 wallet addresses are at risk of loss. On the other hand, if the price is close to 0.000014 US Dollars (Rp0.21), some 127,000 wallet addresses could return to profit positions, which provide a positive boost to the bulls.

According to an analysis from AMBCrypto, the success of this burn strategy relies heavily on the bull's ability to maintain their position in the midst of strong bearish pressure. If they are able to take advantage of this momentum, SHIB could return to its previous highest level.

On the other hand, the long-term trust of SHIB holders in the prospect of recovering prices is getting stronger. Based on data from CryptoQuant, SHIB reserves on the exchange continue to decline significantly. Currently, the total tokens stored on the exchange are at their lowest point this year, decreasing by around 17.8% from 171 trillion to 140.6 trillion tokens. This decline reflects the confidence of SHIB holders that prices will recover in the long term.