SHIB burn rate skyrockets 807% in 24 hours as traders identify potential reversal signals

The Shiba Inu (SHIB) burn rate has experienced a dramatic increase of 807% in the past 24 hours, according to data from Shibburn. More than 20.5 million SHIB tokens were permanently removed from circulation by being sent to dead-end wallets. This significant surge in the burn rate was driven by two major transactions—one removing 13.5 million SHIB and the other 6.3 million. The sharp increase in burns is seen as a move to reduce the circulating supply of SHIB, which, in theory, could increase its scarcity and potentially boost its value over time.

Despite the massive increase in the burn rate over the past day, the broader weekly burn trend tells a different story. Weekly SHIB burns have actually decreased by around 94.6% compared to previous weeks, with only 62.7 million tokens burned over the last seven days, which is still relatively high. However, the weekly burn rate is significantly lower than the 20.5 million tokens burned in a single day.

The SHIB burn initiative is part of a broader strategy to create scarcity by reducing the circulating supply. Since the beginning of the burn efforts, a total of 410 trillion SHIB tokens have been burned, although there are still over 584 trillion tokens in circulation. This means that there is still a large amount of SHIB available for the community to burn in order to reduce the supply further.

The recent surge in burns, along with growing optimism among traders, may signal a potential market reversal for SHIB. Crypto trader $SHIB Knight shared a weekly SHIB price chart with his 467,000 followers, noting that the market could be on the verge of a turnaround. He pointed out that after five consecutive weeks of red, the first green candle has appeared on the weekly chart, suggesting that the price may be starting to recover. This has fueled speculation that the SHIB market could be entering a period of bullish momentum.