Shiba Inu Weekly Burn Rate Resurges, Here’s Possible Reason

After weeks of relatively low burn activity, Shiba Inu’s burn rate is seeing a slow but notable rebound, according to the latest figures from blockchain tracker Shibburn.

The data shows that SHIB’s daily burn rate surged by 111.43%, with a weekly increase of 19.48%, marking a return of momentum to SHIB’s deflationary mechanism.

While these weekly numbers may not match the ecosystem’s historic triple-digit burn surges, the uptick is sparking optimism in the SHIB community. Previously, the team had scaled back burn activities, signaling weak on-chain demand and subdued trading interest. But this renewed burn trend suggests things might be heating up again.

SHIB bulls gearing up?

The SHIB burn strategy, which involves sending large amounts of tokens to dead wallets in an effort to reduce the circulating supply and drive scarcity, stands as a key indicator to SHIB’s adoption and potential performance.

The rebound in SHIB’s burn rate is traced to recent rise in whale accumulations following significant SHIB inflows experienced in recent days. U.Today has recently reported massive SHIB inflows which saw about a hundred and sixty billion tokens flowing into SHIB in just two days.

The report shows that large holders have significantly increased their accumulation following weeks of neutral movement, with net flows rising from almost zero to over 80 billion SHIB per day.

As of today, data shows that the inflow of SHIB’s large holder has increased by more than 120% over the last 30 days. This suggests that high-profile investors within the SHIB ecosystem are regaining interest in the asset. Thus, SHIB whales may be moving money while fuelling demand, resulting in the need to burn more tokens to fuel SHIB’s scarcity.

While recent decisions to reduce SHIB’s burning activity did not really hold a bullish position for SHIB during the period as its price traded in the red zone on most days, the decision to increase the burning pace has fuelled optimism for investors with many suggesting that SHIB’s price explosion is imminent.