Shiba Inu’s token burn activity has fallen sharply, signaling a slowdown in the cryptocurrency’s deflationary efforts. The community removed just 3.24 million SHIB in the past 24 hours, a stark contrast to previous high-volume burns. This decline could weaken the token’s potential for price support. Meanwhile, the coin’s market ranking slipped, reflecting broader challenges in performance and investor confidence.
Burn Activity Plummets After Recent Highs
Data from Shibburn shows Shiba Inu’s 24-hour burn involved only two transactions, with 1 million and 2.24 million SHIB destroyed, respectively. On January 20, the daily burn reached 28.86 million SHIB, largely driven by a single address that incinerated 28 million tokens. The latest activity represents an 88.7% decrease, highlighting a fading burn momentum. According to Shiba Inu community records, the slowdown illustrates the challenge of maintaining consistent deflationary measures.
Token burns form a central part of Shiba Inu’s deflationary strategy, aimed at gradually reducing supply to support long-term value potentially. Despite ongoing efforts, the cryptocurrency still maintains a massive supply. Since its launch with 1 quadrillion SHIB, the community and Ethereum co-founder Vitalik Buterin have burned approximately 410.75 trillion tokens. This leaves about 589.25 trillion SHIB remaining in circulation, underscoring critics’ concerns over supply pressure on market performance.
Market Impact and Ranking Decline
The drop in burn activity coincides with Shiba Inu falling to 25th place by market capitalization. Hedera (HBAR) overtook SHIB, now valued at $4.72 billion compared to Shiba Inu’s $4.68 billion. The difference of less than $50 million makes the ranking vulnerable to further fluctuations. The token’s price underperformance mirrors the broader cryptocurrency market trend, where declining momentum often affects investor sentiment.
Shiba Inu’s slowed burns and slipping market position illustrate the challenges of sustaining a deflationary model in a volatile market. Community and investor focus may shift toward strategies beyond token destruction to bolster price action. SHIB’s burn patterns are an indicator of potential supply pressure and market dynamics in the near term.
Meanwhile, SHIB’s price action has largely mirrored broader market trends. At its current price of $0.00000791, the token is up by 0.83% over the past 24 hours, extending its seven-day decline to 9.61%.
Source: https://coinpaper.com/13931/shiba-inu-price-could-crash-further-as-burns-plummet-88
