TLDR
- Shiba Inu’s burn rate has dropped by 99%, reaching its lowest level in weeks with only 483 SHIB burned in the last 24 hours.
- Despite the sharp decline in burn activity, SHIB’s price increased by 5.14% during the same period, reaching $0.000006115.
- The trading volume for SHIB surged by 14.52% to $145.07 million, with the coin entering oversold territory, which led to increased buying.
- The total circulating supply of Shiba Inu remains at over 585 trillion tokens, raising doubts about the long-term effectiveness of its burn mechanism.
- Some market participants question the impact of the SHIB burn rate on price stability, given the vast number of tokens still in circulation.
Shiba Inu’s (SHIB ) deflationary mechanism, the burn rate, has dropped sharply, reaching its lowest level in weeks. In the past 24 hours, fewer than 500 SHIB were burned, a 99% decrease. Despite this drop in burn activity, SHIB’s price has shown some resilience, registering a slight increase during the same period.
SHIB Burn Rate Declines Drastically
The SHIB burn rate has taken a sharp downturn, with only 483 SHIB sent to dead wallets in the last 24 hours. This is the lowest burn volume in several weeks, according to data from Shibburn. The reduced burn activity indicates that the community has been largely inactive in terms of reducing the token’s circulating supply.
Burning SHIB is considered essential for controlling inflation and creating scarcity, which could support price stability. However, the current low burn rate is raising questions about its impact on SHIB’s long-term price performance. Despite these concerns, SHIB’s price has increased slightly, rising by 5.14% in the last 24 hours.
Shiba Inu Price Resilient Despite Burn Rate Drop
The drop in the SHIB burn rate has not resulted in a price decline for the meme coin. In fact, Shiba Inu has seen a 5.14% increase in price, reaching $0.000006115. This increase comes despite the near-zero burn activity and a 99% collapse in the burn rate.
The trading volume for SHIB also surged by 14.52%, reaching $145.07 million in the same period. This could be attributed to Shiba Inu entering oversold territory, triggering buying activity. While this uptick in SHIB’s price is promising, it remains to be seen if it will be sustained.
While some believe that the burn mechanism could stabilize or increase SHIB’s price, others argue that its effects are limited. The total circulating supply of Shiba Inu remains enormous, with over 585 trillion tokens in circulation. Given the vast supply, only small amounts of SHIB are ever burned, leading some to question the effectiveness of the deflationary mechanism.
