SHIB Burns Surge 16,717.70% Daily as Price Falls 5.44% Despite Aggressive Supply Reduction

Shiba Inu (SHIB) has seen an unprecedented spike in its token burn rate, with over 600 million tokens permanently destroyed within 24 hours. According to Shibburn data, the daily burn rate surged by 16,717.70%, driven by a single transaction of 600.7 million SHIB sent to an unspendable address [1]. This activity, part of a broader effort to reduce token supply, has pushed the seven-day burn total to 616.4 million tokens, marking a 369.03% weekly increase [1]. The rapid destruction of tokens reflects the community’s strategy to enhance scarcity, a common tactic in cryptocurrency projects to influence market dynamics [1].

Despite the aggressive burn, SHIB’s price remains under downward pressure. The token trades at $0.00001324, with a 24-hour decline of 5.44% and a market cap of $7.95 billion. Technical indicators signal weakening momentum, including an RSI of 46.32, which has fallen below the neutral threshold of 50. Bollinger Bands suggest convergent volatility, with the price hovering in the indecision zone above the middle band. Crucially, SHIB has dipped below its 20-day simple moving average, amplifying concerns over short-term bearish trends [1].

The disconnect between the burn rate and price action raises questions about market sentiment. While large-scale burns typically aim to boost scarcity-driven demand, traders appear unconvinced. Lower closes in recent candlesticks and the inability to reclaim key resistance levels, such as $0.00001406, indicate sustained selling pressure. Analysts note that the lack of price response to supply reduction efforts could signal broader market fatigue or speculative short-term positioning [1].

Community-led burns, a hallmark of SHIB’s design, continue to reshape its supply dynamics. By redirecting tokens to dead wallets, the project seeks to align with deflationary models seen in other cryptocurrencies. However, the immediate market impact remains muted, underscoring the challenges of translating on-chain activity into price appreciation. Investors are now closely monitoring whether the renewed burn pace can reverse technical weaknesses or if further downside is inevitable [1].

The data underscores the complexity of balancing supply-side mechanics with demand-side expectations in crypto markets. While the burn rate’s meteoric rise is a technical milestone, its ability to catalyze a sustained price recovery remains unproven. For now, SHIB’s trajectory appears tethered to broader market conditions rather than on-chain activity alone.

Source: [1] https://coinmarketcap.com/community/articles/6888de603ceed718acd721e4/

[2] Source: Tradingview (image embedded in original article)