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The burn rate for Shiba Inu ($SHIB) experienced a staggering increase of 2225% on Thursday, driving significant interest in meme coins. This surge in burn rate is reflective of the community’s efforts to manage the massive supply of Shiba Inu tokens, currently exceeding half a quadrillion.
Understanding Shiba Inu’s Tokenomics
Shiba Inu has a total market capitalization of approximately $14.75 billion, and its community actively participates in burning tokens to create scarcity, which is essential for potentially driving up the token’s price. Token burns are primarily facilitated through the Shibburn platform, which incentivizes holders to burn their tokens. Additionally, Shiba Inu’s Ethereum layer 2 solution, Shibarium, contributes to the burn process by automatically removing a small amount of $SHIB from circulation with each transaction fee.
Recent Burn Rate Surge Explained
According to recent updates, the Shibburn community reported that in the past 24 hours, 14,582,917 tokens were burned—a remarkable 2225.34% increase compared to previous figures. This was primarily a grassroots movement rather than developer-led actions, indicating increased community engagement. The uplift in burning activities coincides with a broader rally among meme coins, which saw a collective increase of 5% within just 24 hours, elevating their total market cap to an impressive $125 billion.
Impact on Shiba Inu’s Price
Despite the significant increase in burns, Shiba Inu’s price saw only a modest rise of 2.5% over 24 hours, trading around $0.00002498. In comparison, Dogecoin ($DOGE), which remains the largest meme coin, experienced a more substantial growth of 5.8% for the day and 11% over the week, currently priced at $0.4035. Data suggests that Shiba Inu had previously reached a six-month high of $0.00003 on November 12, only to stabilize at its current levels indicating that the burn activity has not significantly shifted market sentiment in favor of Shiba Inu.
Lukewarm Market Sentiment
Further analysis reveals that the Relative Strength Index (RSI) for $SHIB has remained around the midpoint of 50 for the last nine days, highlighting a lack of strong bullish sentiment even amid the recent meme coin rally. This lack of enthusiasm may be detrimental to $SHIB’s performance as competition in the meme coin space heats up.
Emerging Competition: Catslap
This week, a new contender has emerged in the meme coin arena: Catslap ($SLAP). Launched directly to decentralized exchanges (DEXs), it quickly captured attention and skyrocketed more than 1500% within its first 24 hours, driven by interest in its interactive tap-to-slap mini-game. Players can engage with the game by clicking on the screen to animate a gif featuring a viral slapping cat. Catslap’s official platform also tracks slaps by country, enabling players to compete for rewards based on their nation’s performance on the leaderboard.
Investment Opportunities with Catslap
Since its inception, Catslap has gathered a following of over 3,200 users on its X account. The project’s tokenomics feature a maximum supply of 9 billion $SLAP tokens, with allocations set aside for liquidity (50%), staking rewards (20%), community benefits (10%), development (10%), and the team (10%, vested for a decade). Currently, $SLAP can be purchased at roughly $0.00214291 either through Uniswap or its official website.
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