Shiba Inu Burn Rate Drops 99.32 Percent in 24 Hours

Shiba Inu has entered a critical phase after its burn rate dropped sharply by over 99 percent in just 24 hours. This significant decline has raised concerns among investors that the meme coin may lose further value and potentially add another zero to its price. According to the information provided by Shibburn, only 101,213 SHIB tokens were incinerated in the recent period, marking a 99.32 percent decrease in the number of tokens taken out of the market. This sharp reduction in the burn rate has crippled one of the major value-preserving aspects of the coin, which is the deflationary mechanism designed to reduce the circulating supply and support price increases.

The total supply of Shiba Inu tokens stands at 589.25 trillion, with 584.53 trillion still in circulation. The remaining 4.71 trillion tokens are staked within the ecosystem, which helps to stabilize the supply and demand dynamics. The significant reduction in burns has led to speculations that the project has already lost momentum in experimenting with one of its key methods of increasing the price. Despite the decline in the burn rate, Shiba Inu has shown resilience in its price movements. Over the past 24 hours, the price of SHIB has fluctuated, reaching a low of $0.00001151 and a high of $0.00001178. As of the latest update, the price stands at $0.00001166, reflecting market volatility. This price movement suggests that other factors, such as increased interest and potential gains, may be influencing the market sentiment.

Other market metrics suggest that a recovery may be on the cards. The surge in Shiba Inu exchange reserves to $929 million indicates intensified trader action and may signal future buying or selling demand. Additionally, the increase in open interest in the futures market reflects market participants' confidence in Shiba Inu's resilience and its ability to stay above the $0.000011 support level. The bullish indicators, such as the surge in exchange reserves and increased open interest, provide a silver lining for Shiba Inu. These factors suggest that despite the significant drop in the burn rate, the ecosystem may still have the potential for a rebound. The community's support and the overall market sentiment will play crucial roles in determining the future price movements of SHIB. However, the seriousness of Shiba Inu raises doubts as its burning mechanism fails, making it more probable that the token will add another zero if the burn rate does not improve.