The Shiba Inu ecosystem is kicking off the week with positive momentum. The community-driven burn rate, designed to decrease the token’s extensive supply, has witnessed a substantial surge, aligning with a recovery in the meme coin’s price.
SHIB Burn Spikes by 233%
On Monday, Shibburn, a Shiba Inu burn tracking website, reported an impressive 233% surge in the SHIB burn rate. This marked a turnaround from a slow weekend when burn rates had declined significantly.
As the new trading week began, the total SHIB tokens burned during this period surpassed 56.98 million. This resulted from tokens sent to the burn address from 29 different addresses. Notably, over 3.7 million tokens were sent to the burn address in the last hour of writing.
The token burn activity also contributed to a rise in the weekly burn total. Monday’s burn figures pushed the weekly burn total to over 316.7 million, indicating a 26% increase in the burn rate compared to the previous seven days.
Among the most significant burn contributors were the ‘0x909a9’ and ‘0x4be2’ addresses, which collectively burned 7,119,784 million and 8,095,490 million tokens, amounting to over 15 million tokens, or approximately 27% of the total burns for the day.
Shiba Inu Retains Support as Bitcoin Leads Market Rally
On Sunday, as the price of Bitcoin surged towards the $28,000 level, the entire crypto market saw an uptick in response. Shiba Inu experienced a reversal in its bullish trend that had been ongoing since the beginning of the month.
Over 24 hours, Shiba Inu managed to gain around 1.24%. While this might not be as significant as the recoveries observed in some other assets, it was enough to help the cryptocurrency maintain its support at $0.000007. This stabilisation provides some respite for bullish investors as they navigate the market.
However, Shiba Inu is still down by 0.59% on the weekly chart, indicating that the bulls’ grip on the asset remains fragile, and bears could regain control if momentum weakens. This tug of war between bulls and bears is reflected in the daily trading volume, which has increased by 25.85% and now stands at $101.7 million, according to CoinMarketCap data.
Aside from Bitcoin’s recovery, no specific catalyst is propelling the SHIB price. Consequently, Shiba Inu could revert to a bearish trend if the Bitcoin rally loses steam.