Shiba Inu saw its token burn rate surge 274% in the past 24 hours, as the meme cryptocurrency's community destroyed more than 34 million SHIB tokens amid growing speculation about a December market recovery.
The burn activity comes as Coinbase Institutional flagged improving market conditions that could favor risk assets like SHIB, which has closely tracked Bitcoin's price movements in recent months.
According to tracking service Shibburn, 34,397,753 SHIB tokens were removed from circulation on Saturday.
The daily burn rate spike represents a dramatic increase from typical activity levels, though weekly burns totaled 94.6 million tokens with a 9.46% decline in the seven-day rate.
SHIB traded at $0.00000834 on Sunday, down roughly 2% over 24 hours as broader crypto markets retreated.
What Happened
The accelerated burn activity reduced Shiba Inu's total supply to 589.25 trillion tokens.
Community-driven burns permanently remove SHIB from circulation by sending tokens to unusable wallet addresses, creating artificial scarcity.
Meanwhile, Coinbase Institutional released market analysis citing improved liquidity conditions and rising Federal Reserve rate cut probabilities as catalysts for potential December gains.
The firm's proprietary M2 money supply index shows recovery after months of declining liquidity.
Markets are pricing a 93% probability of Fed rate cuts at next week's policy meeting, according to Polymarket, with CME FedWatch showing 86% odds.
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Coinbase had previously predicted November weakness followed by a December reversal based on similar indicators.
Why It Matters
The burn rate surge and macro developments create potential support for SHIB despite recent price weakness.
Token burns reduce circulating supply, theoretically increasing value for remaining holders if demand holds steady.
However, SHIB's massive supply - still in the hundreds of trillions - means even significant burns represent a tiny fraction of total tokens.
The meme coin attempted a breakout earlier this week, briefly surging past its 50-day moving average to reach $0.0000095 on December 3 before retreating.
Technical analysts see $0.0000095 as critical resistance that SHIB must reclaim to advance toward $0.00001177 and potentially $0.0000148.
Support appears to be forming at $0.00000815, with deeper levels around $0.0000075-$0.0000078 if selling accelerates.
The December recovery thesis depends heavily on whether improved liquidity and potential Fed easing can reignite risk appetite.
SHIB holders are banking on Bitcoin strength translating into gains for correlated altcoins as year-end approaches.
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