Quick Highlights
- SHIB token burns jumped 1,309% in 24 hours with nearly 3 million tokens sent to dead wallets, but weekly burns dropped 81% overall.
- The token fell 12% on Monday and has since recovered 6.74% to trade at $0.00001265.
- The SHIB team told the community, “We’re down, not done,” while anonymous whales continue burning large amounts of tokens.
Shiba Inu token burns experienced a massive 1,309% increase recently. Anonymous investors sent 2,944,722 SHIB tokens to unspendable wallet addresses during this period. The meme coin booms show a new community push to lower the supply of the meme coin in circulation.
The Shibburn data aggregator tracked the high growth rate of burning activity. The system tracks tokens that have been permanently out of circulation due to moving to dead-end wallets. No one can reverse or recover such transactions.
Two significant burn transactions dominated the daily activity. The biggest single burn eliminated 1,694,200 SHIB tokens. A second major transaction lost 1,076,047 tokens. The two transfers were made anonymously without the identities of the wallet owners.
The dramatic daily increase contrasts sharply with weekly performance metrics. Burns fell by 81.45% in the seven days, even though the absolute numbers were higher. The weekly burn was 11,735,561 tokens as compared to the daily burn of 2,944,722 tokens.
Token Burns Drive Supply Reduction Strategy
The burn mechanism of Shiba Inu is the main tool for decreasing the total supply. Every burnt token permanently leaves the market, and it cannot be returned to the market. The deflationary strategy will help to enhance scarcity and possibly price stability.
The community-driven initiative relies on voluntary participation from token holders. The investors opt to give up their holdings by sending them to unreachable addresses. These burn activities are not mandated or controlled by a central body.
Burn rates vary based on market conditions and community sentiment. The high burn periods are usually accompanied by trading activities or community actions. On the other hand, low interest rates normally lead to low burn volumes.
Many large burns are anonymous, which means institutional or whale involvement. These large holders can move the burn measures with large individual transactions. Their involvement indicates that more people in the market have confidence in the long-term outlook of the token.
SHIB Price Recovery Attempts Amid Market Volatility
Shiba Inu faced significant price pressure at the start of the week. On Monday alone, the token dropped by 12 per cent, a move that raised panic among investors and community members. This sharp drop triggered more debate regarding the state of the market and its future.
The SHIB development team tackled community issues via the formal channels of communication. The @Shibizens account posted an encouraging message to holders and Shibarium builders. “We’re down, not done,” the team noted.
This announcement recognized prevailing market challenges and still projected optimism. The information was directed to the token holders and developers working on the Shibarium blockchain. Morale within the community is vital in a prolonged reduction in prices.
At the time of writing, the token is trading at $0.00001208, suggesting a 3.63% decline in the last 24 hours.
The price movement reflects broader cryptocurrency market dynamics and meme coin volatility patterns. SHIB remains the second-largest meme cryptocurrency by market capitalization despite recent fluctuations. Its position indicates sustained investor interest and market recognition.
Source: https://coinpaper.com/10806/shib-burns-surge-1-309-as-community-battles-price-decline
