Recent reports highlight a noteworthy development within the Shiba Inu ecosystem, where a substantial number of SHIB tokens—52 million—have been burned, signaling a strengthened burn rate as of February 18th. Despite this, the trend experienced a swift reversal, indicating the volatile nature of token burn rates and its limited duration of positivity.
Token Burns Signal Community Strategy for Value
The token burn, though a small fraction compared to the circulating supply, underlines the community’s strategy to combat inflation and enhance the token’s value through scarcity. Various factors, such as community donations, transactions, and planned burn events, drive the rate at which tokens are permanently removed from circulation.
Market Indicators and Holder Behavior
Additional indicators provide insights into Shiba Inu’s market health. The MVRV ratio ascended into profitable ranges over the past weeks, reflecting gains for SHIB holders, despite not reaching the peak values of December. Concurrently, the average age of Shiba Inu tokens initially declined in February but has recently shown signs of increase, suggesting growing accumulation by holders—a bullish signal. In contrast, substantial token movement on certain days hints at potential sell-offs.
The supply distribution data reveals different trends among holders: there’s an increase in wallets holding 0-100 thousand SHIB, but a decrease in those owning between 100 thousand and 1 billion tokens since December, indicating varied accumulation patterns that may influence market dynamics.
Shiba Inu’s one-day chart offers optimism for an upward trend, with market structure and RSI pointing to buyer dominance. The OBV’s gradual incline over the last fortnight suggests increasing buying pressure. If SHIB maintains its momentum above the $0.00000927 threshold, it could potentially overtake its local high at $0.00001195.