Shiba Inu Burn Rate Jumps 3705%, Price Breakout Imminent?

Shiba Inu (SHIB) has experienced significant development in the last 24 hours.

The ecosystem has seen a relatively massive deflationary move to stabilize price action.

Data from Shibburn, the platform that tracks the burn rate on Shiba Inu, shows a massive spike in this metric.

The burn rate jumped by 3,705% in the last 24 hours, as the protocol torched 29,989,525 SHIB.

Notably, the burn rate signals the SHIB community’s dedication to regulating the token supply.

The over 3,000% surge in burn rate demonstrates the community’s commitment to the ecosystem’s growth.

This is most reflected in the burn rate, which is designed to increase the value of SHIB.

Analysts consider the significant uptick indicative of SHIB holders’ anticipation for a price reversal.

In the last seven days, after breaching the $0.0000135 support, SHIB price has continued on a downward spiral.

Hence, their burn action could have been a move to stabilize the price.

For clarity, burn activities remain one of the deflationary measures employed by the SHIB Army to stabilize prices.

Reducing circulating supply creates scarcity and might cause the value of the memecoin to soar if matched with high demand.

Interestingly, the SHIB development team recently introduced a new game mode in Shiba Eternity.

This mode rewards players while supporting SHIB burn activities. The game is structured to  permanently remove tokens from circulation after every game.

Notably, at the start of the game, each player deposits 50,000 SHIB as an entry fee, creating a 100,000 SHIB pool for each match.

When the game ends, the winner earns 80,000 SHIB, and the platform collects 10,000 SHIB as fees.

The remaining 10,000 SHIB is sent to a dead wallet. The development team has not officially released the full version.

Lucie, the ecosystem’s Marketing Lead, highlights the potential of this model.

According to her, if at least one million duels occur between players daily, that could wipe out 10 billion SHIB every 24 hours.

Such a development might contribute to increasing scarcity and potentially the value of SHIB in the market over time.

SHIB Price Struggles Despite Burn Efforts

As of this writing, SHIB price was changing hands at $0.00001270, a 4.94% decline in the last 24 hours.

SHIB’s bearish performance appears to have affected investors’ confidence.

Within the same time frame, the trading volume declined by 27.23% to $224.34 million.

Analysts suggest that market participants are cautious of committing more funds to the memecoin.

Notably, SHIB’s weekly chart shows that although the token has bounced off the support level of $0.00001231, it remains uncertain it could stabilize above it.

Market watchers predict that if SHIB experiences a breakout, it could test the $0.000011 price range.

Shibarium Enhancements and Ecosystem Growth

Meanwhile, in the broader Shiba Inu ecosystem, Shibarium updates reveal a shift: Some users no longer need BONE for fees.

Users can now initiate certain gasless transactions. This move reduces transaction costs and makes them seamless across decentralized applications (DApps).

Analysts say the move mirrors gasless models on other Layer-2 networks to drive Web3 adoption.