- Shiba Inu (SHIB) is showing signs of a potential rally as its burn rate soars by over 358% and historical May data points to strong average gains of 61%.
- With 329 million SHIB recently burned and growing investor interest, the community is hopeful the token could soon drop another zero from its price.
Shiba Inu is once again in the spotlight as its community takes a notch up as it intensifies its token burns. These efforts have coincided with market data hinting at a potential for a major price rally in May.
At the time of press, SHIB is swapping hands with $0.00001527 jumping 13.22% and 13.66% in the past 24 hours and past week respectively. This has further increased hopes of the token finally dropping another zero, a feat it briefly achieved before retreating.
Adding on to the enthusiasm, SHIB exec has posted a more bullish aspiration for the memecoin. In a post on the X platform, LUCIE stated;
Affirmation: Shib’s about to do a 1000% in 3 days
More SHIB Tokens Being Burned
According to data from wallet tracker Shibburn, SHIB’s weekly burn rate soared by a staggering 358.82%, driven by the destruction of 329,633,128 SHIB in the past seven days alone. The largest single burn during this period accounted for 263.7 million SHIB, permanently removed from circulation.
Although the daily burn rate has recently dipped to the red zone at -97.49%, it had earlier jumped an eye-watering 468,968% in a single day, thanks to the community torching nearly 19 million SHIB.
These burns contribute to a broader trend of supply reduction. Of the original one-quadrillion Shiba Inu tokens, 410.7 trillion have been burned, including 500 trillion famously sent to dead wallets by Ethereum co-founder Vitalik Buterin in May 2021. As of now, approximately 584.4 trillion SHIB remain in circulation.
Burning tokens reduces supply, potentially boosting scarcity and, by extension, price. And SHIB’s historical performance in May gives further reason for optimism. Data from Cryptorank reveals an average May return of 61% over the last four years. The standout month was May 2021, when SHIB skyrocketed by 355.4%, while May 2024 saw a modest but encouraging 13% gain.
Despite the bullish sentiment, the SHIB team is urging caution. Lucie, the project’s official marketing lead, recently warned the community about an uptick in cryptocurrency scams targeting SHIB holders. She emphasized the importance of adhering to basic security practices and the crypto mantra “DYOR” (Do Your Own Research), especially when interacting with new projects or giveaways related to the SHIB ecosystem.
While current momentum alone may not be enough to erase a zero, the confluence of an aggressive burn strategy, favorable historical trends, and a growing community could set the stage for a significant rally. If SHIB manages to build on its recent gains and sustain buying pressure through the rest of May, the long-discussed milestone of trimming a zero from its price might not be far off.