Shiba Inu's Burn Rate Plummets 99.44%, Threatening Price Recovery

Shiba Inu, a popular meme coin, has experienced a significant drop in its burn rate over the past 24 hours, raising concerns about its price recovery. The burn rate, a key metric in Shiba Inu's tokenomics, has plummeted by 99.44%, which could potentially threaten the recent price recovery of the meme coin.

Shiba Inu's price action in the past 24 hours has shown a brief recovery after hitting a low of $0.00001237. This recovery is part of a 15% increase after Shiba Inu reached a low of $0.00001102 on March 11, which is its lowest point in over a year. However, the slowdown in the burn rate could jeopardize this price recovery.

The burn mechanism in Shiba Inu is designed to reduce the supply of tokens, creating scarcity and driving up value. However, on-chain data shows that SHIB's burn rate has dropped significantly in the last 24 hours, marking a sharp change from the relatively high burn numbers recorded in previous days. According to data from the Shiba Inu burn tracker, a total of 2,811,819 SHIB tokens have been sent to burn addresses in the past 24 hours. This number, although substantial, falls short of the volume required to make an impact in the current market conditions and marks a 99.44% decline from the over 500 million SHIB tokens burned in the previous 24-hour timeframe.

The volatility in the burn rate has often coincided with fluctuations in overall market sentiment. This latest crash raises doubts about whether investors are still committed to the long-term burn initiative. The burn process, where SHIB tokens are sent to dead wallets, is intended to diminish the available supply and make the remaining tokens more valuable. This helps prevent further price declines during market crashes.

At the time of writing, Shiba Inu is trading at $0.00001285, up by about 3% in the past 24 hours. A resurgence in the burn rate would be crucial for Shiba Inu to maintain its recent gains and push for further recovery. A consistent and substantial burn rate would support the notion that Shiba Inu has already established a local bottom at $0.00001102 and pave the way for a stronger uptrend.

However, if the burn rate continues to decline over the next 24 hours, it could weaken this recovery effort and increase the likelihood of a retracement back toward its March 11 low. The future of Shiba Inu's price recovery hinges on the burn rate's ability to rebound and sustain its momentum.