SHIB witnesses 2000% surge in burn rate — what about its price

• Shi­ba Inu expe­ri­enced a mas­sive increase in its burn rate, result­ing in the burn­ing of over 202 mil­lion SHIB tokens.
• The recent spike in SHIB’s burn rate impact­ed its price, lead­ing to a mod­est gain.

The world of Shi­ba Inu [SHIB] was expe­ri­enc­ing a surge of progress at press time, par­tic­u­lar­ly with the intro­duc­tion of Shibar­i­um. Notably, there has been a notable increase in its burn rate, influ­enced by sev­er­al fac­tors. Con­sid­er­ing this spike in burn rate, one might won­der if it has affect­ed the price of Shi­ba Inu as well.

Read Shi­ba Inu’s [SHIB] Price Pre­dic­tion 2023–24

Over 2000% of SHIB burnt

Accord­ing to the lat­est sta­tis­tics from shib­burn, Shi­ba Inu expe­ri­enced a remark­able surge in its burn rate on 1 April. The data showed an increase of 2025.75% in the burn rate, which result­ed in the burn­ing of over 202 mil­lion SHIB tokens as of this writing. 

Fur­ther­more, the total num­ber of SHIB tokens burnt has now sur­passed 400 trillion.

Triggers for Shiba Inu burns

The burn rate of SHIB is sub­ject to fluc­tu­a­tions due to mul­ti­ple fac­tors, includ­ing the vol­ume of SHIB trans­ac­tions, the token’s price, and the gen­er­al mar­ket conditions. 

Also, mod­i­fi­ca­tions made by the Shi­ba Inu team to the token’s burn mech­a­nism can impact the burn rate. The mod­i­fi­ca­tions could be tweak­ing the trans­ac­tion fee or intro­duc­ing fresh burn events.

Volume and daily price move

Despite the launch of Shibarium’s test­net, it is impor­tant to note that the network’s main token cur­rent­ly in use is the Shi­ba Swap BONE [BONE]. In terms of SHIB’s trad­ing vol­ume, data from San­ti­ment indi­cat­ed that there had been no sig­nif­i­cant increase. 

As of this writ­ing, the trad­ing vol­ume of SHIB stood at over 217 mil­lion, with no sig­nif­i­cant spikes observed.

Source: San­ti­ment

The recent spike in Shi­ba Inu’s burn rate also impact­ed its price. Upon ana­lyz­ing SHIB’s price move­ment on the dai­ly time­frame, it could be observed that the token had been on an upward trend for the past two days. 

The pre­vi­ous trad­ing ses­sion end­ed with a gain of over 2%, and as of this writ­ing, it had a gain of over 1%. This slight increase in val­ue caused the Rel­a­tive Strength Index to move slight­ly above the neu­tral line.

Source: Trad­ingView

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Over the past 30 days, Shi­ba Inu investors found a rea­son to rejoice as the token expe­ri­enced a mod­est gain. The 30-day Mar­ket Val­ue to Real­ized Val­ue ratio (MVRV) showed that SHIB has moved to 0.652%.

This val­ue sug­gest­ed that the token has moved from being under­val­ued for months to being slight­ly overvalued.

Source: San­ti­ment