Shytoshi Kusama announced an aggressive token burn campaign for SHIB in September 2022. The burn rate of the Shiba Inu increased by up to 1,500%.
On the daily chart, speculation over the improving supply and demand dynamics has increased the price of SHIB by 3%.
Recently, Shiba Inu carried out a strict token burn campaign, which thrilled the SHIB army, but can it help a price recovery from the lower support levels as hoped? Updated on September 23 @ 11:00 UTC: Leading Shiba Inu producer Shytoshi Kusama recently disclosed that 5% of the revenue from the upcoming Shiba Eternity game will be burned. Meme tokens frequently carve out a position in the cryptocurrency market by driving gains and charting rallies, despite their inherent bearishness.
Shiba Inu, the second-largest meme currency by market valuation, is likely to advance thanks to ecosystem-centric changes that are now occurring. For the time being, it is unclear if the most recent events will be able to propel SHIB's price higher and provide it a much-needed positive lift.
Since Aug. 15, when the meme token experienced gains of about 45% in just four days, SHIB HODLers have been daydreaming about price increases. Investor eyes once more twinkled with anticipation of an impending surge following Shytoshi Kusama, the pseudonymous founder and chief developer of Shiba Inu, last week's announcement of an aggressive token burn campaign.
More over 410 trillion SHIB, or more than 41% of the total supply as of Sept. 22, had already been burned from the starting supply. According to data from Shib Burn, a total of 11.7 million SHIB tokens were burned over the course of the previous twenty-four hours as of the time of publication.
A large number of SHIB tokens were transmitted to a dead wallet on September 21, which caused the burn rate to increase noticeably by 1,500%. However, as campaign anticipation waned at the time of publication, the burn rate dropped by 83%.
A significant quantity of SHIB has been burned over time, which helps the network stay healthy by lowering the supply. Will token demand follow suit, even though this supply burn is anticipated to have a long-term favorable impact?
If demand increases, the decrease in SHIB's supply should, in theory, have a favorable impact on the token. Network indicators showed an increase of 1.85% over the previous week in the number of new addresses added on a daily basis. In September, there are approximately 1,600 new addresses created each day on average.
With the exception of a few oddities in August, when more than 4,000 new addresses were generated, there have been no significant jumps in retail interest in SHIB.
Retail enthusiasm helps prices rise as new players enter the market. In particular, SHIB's price increased in October 2021, and in February 2022, as the number of new addresses increased, SHIB's price also increased.
The long-term support level of $0.00001050 has temporarily prevented additional price declines in SHIB.
Data from IntoTheBlock also reveals that at the time of publication, more than 75% of HODLers were "out of the money" or experiencing a loss. Overall, the supply-demand fundamentals are improving, which could help SHIB develop if token demand increases.
