Shiba Inu (SHIB), the second-largest meme cryptocurrency by market capitalization, is showing strong bullish signals on the supply side, even as it continues to face selling pressure in the market.
Earlier this week, SHIB’s burn rate skyrocketed by over 112,000%, with more than 116 million tokens sent to wallets that permanently remove coins from circulation. This massive token burn drastically reduces SHIB’s circulating supply, reinforcing its deflationary appeal.
The daily burn rate measures how many SHIB tokens are permanently destroyed each day, a mechanism designed to decrease supply and potentially boost the asset’s value over time. According to CoinDesk’s AI insights, “Over 527 trillion SHIB tokens are approaching profitability, while the burn rate exploded 112,839% with 116 million tokens removed from circulation.”
The Shiba Inu ecosystem also displayed robust fundamentals, highlighted by a record surge in wallet growth surpassing 1.5 million unique addresses and a notable rise in transactions on Shibarium’s layer-2 network.
Despite these promising indicators, SHIB remained in a downtrend at press time, trading at $0.00001190 — down about 2% in the last 24 hours and nearly 5% for the week. Overnight, the token experienced heavy selling pressure with volume exceeding 500 billion units, forming resistance near $0.0000122.
While SHIB’s supply dynamics suggest bullish momentum, the token still battles significant market headwinds.
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