The Shiba Inu token experienced a dramatic 500.68% increase in its burn rate over the past 24 hours. Data from Shibburn shows that 10,491,803 SHIB tokens were permanently removed from circulation during this period.
A single transaction accounted for the entire burn activity. The 10.49 million tokens were sent to dead wallets in one operation. The identity of the entity behind this transaction remains unknown.
The Shiba Inu community has consistently used token burning as a deflationary strategy. The mechanism aims to reduce the circulating supply and create scarcity. Supporters believe this approach can trigger price recovery in the cryptocurrency market.
Total Supply Reduction Shows Limited Impact
The recent burn brings the total number of permanently destroyed SHIB tokens to 410.75 trillion. This represents a significant portion of the original token supply. However, 589.25 trillion SHIB tokens remain in existence.
Current circulation figures reveal 585.41 trillion SHIB tokens available for trading. An additional 3.833 trillion tokens are locked in staking contracts. The enormous supply still in circulation has raised questions about the effectiveness of the burn mechanism.
Critics argue that the burning process has failed to deliver expected results. The token continues to struggle with bearish market conditions. Recent price action shows SHIB has added another zero to its value despite ongoing burn activities.
The lack of structure in the burning process presents a fundamental challenge. Burns occur at the discretion of community members rather than through systematic protocols. This approach makes it difficult to achieve meaningful supply reduction.
Price Performance Reflects Ongoing Challenges
Shiba Inu currently trades at $0.000007278, reflecting a 3.03% decline over the last 24 hours. The token dropped from a daily high of $0.000007571 as selling pressure intensified. Large volumes of SHIB tokens moved to exchanges, indicating increased liquidation activity.
Whale activity within the Shiba Inu ecosystem has decreased substantially. These large holders play a crucial role in driving price momentum upward. Their reduced engagement has contributed to negative price performance. The withdrawal of whale support creates additional headwinds for recovery efforts.
Open interest in Shiba Inu derivatives has fallen sharply over 48 hours. The metric declined by more than 8%, suggesting reduced trader confidence. Investors appear hesitant to take positions in the memecoin amid uncertain market conditions.
Source: https://coinpaper.com/14175/shib-price-decline-continues-despite-500-burn-rate-spike
