1,983% SHIB Burn Spike Sends Shiba Inu Supply Lower: What to Watch Now?

Shiba Inu has seen its total supply drop by 46,235,753 SHIB tokens as the Shiba Inu community sends tokens to dead wallets.

According to Shibburn, 46,235,753 SHIB tokens were burned in the last seven days, resulting in a 1,983.45% spike in weekly burn rate. In the last 24 hours, a total of 11,052,930 SHIB tokens were burned, albeit with no impact on the daily burn rate, which stood at 0%.

The impact of 46,235,753 SHIB tokens burned in the last seven days is felt as the total Shiba Inu supply drops.

Shiba Inu’s total supply is now 589,246,045,731,990 SHIB according to Shibburn, a drop from the initial one quadrillion SHIB tokens at its inception. While Shiba Inu’s total supply still stands at a massive 589 trillion tokens, gradual SHIB burns have steadily contributed to a drop in the Shiba Inu supply.

At press time, Shiba Inu was trading down 1.22% in the last 24 hours to $0.000007073 and down 8.62% weekly.

Trading volumes are light ahead of the Christmas holiday, with Shiba Inu trading volume dropping 8.7% in the last 24 hours to $88.58 million, according to CoinMarketCap data.

Shiba Inu tests $0.000007 support

The broader crypto market largely traded in red as investors hinted at risk-off sentiment ahead of the holidays. Bitcoin and major tokens slipped on Wednesday as the total crypto market value fell below $3 trillion to $2.94 trillion after another failed attempt to sustain a rebound.

Shiba Inu is extending its drop into the fifth day since Dec. 19, reaching an intraday low of $0.00000698. The market is closely watching SHIB as it tests the $0.000007 level, where it saw a sharp rebound on Dec. 19.

If Shiba Inu successfully confirms $0.000007 as support, it might target the $0.00000765 high ahead of the $0.000008 level.

Investors are currently considering the Commerce Department data that showed the U.S. economy grew by 4.3% in the third quarter, which is its fastest pace in two years, with the stronger-than-expected number potentially complicating the Federal Reserve’s path on interest rates.

A majority of investors now expect rates to remain on hold until April, at which point the Fed will resume reductions.