Shiba Inu Community Burns 1.3 Billion Tokens, Price Drops 1.84%

The Shiba Inu community has intensified its efforts to reduce the circulating supply of SHIB tokens, burning over 1.3 billion tokens in the past week. This significant increase in the burn rate, which spiked by over 4,000% in a single day, was largely driven by a substantial transaction from an anonymous whale. The whale burned over 13.15 million SHIB tokens, contributing to the total burn of 13.45 million SHIB in that 24-hour period. This aggressive burn rate is facilitated through the Shibarium layer-2 network, where a portion of gas fees paid in BONE tokens is converted to SHIB and sent to a "dead" wallet, permanently removing it from circulation.

Despite these efforts, the market price of SHIB has not responded positively in the short term. Over the past 24 hours, the token's price dropped by 1.84%, with SHIB trading near $0.00001158. Its market capitalization also slipped to $6.82 billion. This divergence between the increased burn rate and the declining price highlights a classic crypto market scenario where a dedicated community focuses on long-term fundamentals despite facing short-term bearish sentiment. The low trading volume, which fell by 38% to about $120.27 million, indicates a general lack of trading interest at current levels, suggesting that the market is not yet pricing in the long-term effects of the supply reduction.

Even with the price fluctuations, the Shiba Inu project maintains a large and loyal investor base. Data shows that 1.51 million investors continue to hold the token, signaling a strong community belief in the long-term viability of the Shiba Inu ecosystem and its deflationary mechanics. This community-driven effort to reduce the token's vast supply showcases the dedication and long-term vision of the Shiba Inu community, despite the current market conditions.