Shiba Inu token successfully maintains $0.00001 support despite a staggering 4,144% surge in burn rate.
The burn rate of the Shiba Inu (SHIB) has experienced an astounding surge of 4,144% in the past week, as the popular meme coin reclaims and maintains its position above the significant psychological threshold of $0.00001.
This remarkable increase in the burn rate of Shiba Inu was primarily driven by a massive burn transaction executed by the Shibarium development team. Shibarium, which serves as the layer-2 protocol for the ecosystem, carried out its second native burn on December 16, resulting in the destruction of billions of SHIB tokens.
The transaction, which was highlighted by Shibburn, a community-driven Shiba Inu burn tracker, involved the burning of 8.6 billion SHIB tokens, equivalent to $88,650. Following this event, the burn rate skyrocketed by an exceptional 4,144% over the course of the past week.
Data confirms that the protocol has witnessed the incineration of 8.35 billion SHIB tokens within the last seven days. This recent burn transaction induced by Shibarium follows a previous burn involving 8.24 billion tokens on December 5. Notably, this earlier burn marked Shibarium’s first SHIB burn since its launch in August.
These recent burns were a direct result of a significant surge in transaction count on Shibarium. Importantly, Shibarium allocates 70% of its gas fees to support the SHIB burn campaign. For several months, the network struggled to reach the minimum threshold of $25,000 in accumulated fees required for the initial burn.
However, the situation took a bullish turn when Shibarium began experiencing substantial spikes in daily transactions starting from November 30. The daily transaction count on Shibarium surged to an average of 7.5 million earlier this month. This surge in transaction count led to increased gas fees, ultimately resulting in the first burn.
In the midst of this bullish environment, Shiba Inu has entered favorable market conditions in recent days. After a bearish performance lasting three days, the token reclaimed the $0.000011 price level on December 16. Eventually, SHIB rallied to reach a nine-month high of $0.00001195 on December 17.
Although there has been a retracement, the memecoin has successfully maintained support above $0.00001 and is currently trading at $0.00001025, reflecting a slight 0.10% increase over the past 24 hours. The last support level for Shiba Inu above $0.00001 lies at the Fib. 0.618 level, which is situated at $0.00001007.
