In January 2024, Shiba Inu burnt 9.9 billion SHIB.Burns fuelled by shibarium were the source of December’s fire. SHIB burns on Shibarium are now being automated.
A token burn in January 2024 made news for Shiba Inu (SHIB). At the event, a significant portion of SHIB tokens were taken out of circulation forever in an effort to affect the value and scarcity of the cryptocurrency.
Let’s examine the January token burn in more depth, contrast it with prior months, and consider any possible effects on the price of SHIB.
9.9 Billion Tokens Are Not in Use
About 9.9 billion SHIB tokens were burned in January 2024 inside the Shiba Inu cryptocurrency ecosystem. This action was taken in an effort to lower the token’s quantity in circulation and perhaps raise its value.
In total, this fire took $88,348 worth of SHIB out of circulation. This was still a lot less than the all-time high of 36 billion SHIB tokens burnt in December 2023, though. Transactions on the Shibarium layer 2 scaling solution were the main source of energy for the December burning.
Even though the fires are still going strong and have destroyed over 410.7 trillion SHIB tokens, the community is advocating for more extreme burning procedures. The goal is to improve the burn rate by raising the price of Shibarium gas.
Moreover, an automated SHIB burn system on Shibarium is being planned. A Puppynet test will be conducted before to their mainnet debut. This suggests a more calculated strategy to increase the systematisation of token burning.
Analysis of SHIB Prices
From its lowest position since the all-time high of $0.0000061 on June 9, 2023, Shiba Inu trended higher. It first reversed when it encountered its downward resistance, which was moored at the peak of August 2022.
On October 19, however, it maintained a higher low of $0.0000068, which prompted a breakthrough. But at the previous high of $0.000011, the movement stopped, signalling significant horizontal resistance.
SHIB retreated to its earlier descending barrier, attempting to find support at $0.0000085. In the event that it does find support, it may rebound and initiate a new upward trend.
In this case, we could see Shiba Inu’s price breakout above its horizontal resistance. The following bull phase would then be indicated by this. Notably, there was no discernible higher high, even if the initial higher low had previously suggested as much.
The following upswing may indicate that SHIB is starting a new multi-year bull cycle that might see it reach a new all-time high.
With over four years of immersive experience in the crypto industry, Nick is a seasoned crypto writer dedicated to unraveling the complexities of blockchain technology and decentralized finance.
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