Shiba Inu Burn Rate Surges 1,526.8% in 24 Hours, 19.5 Million Tokens Removed

The burn rate of Shiba Inu (SHIB) has seen a significant surge, with data showing a dramatic increase of 1,526.8% in the past 24 hours. This surge has led to the removal of 19.5 million SHIB tokens from circulation through two major transactions: 1 million SHIB burned three hours ago and 16.2 million SHIB burned 20 hours ago. Despite this substantial reduction in the circulating supply, the price of SHIB has remained unchanged, indicating a lack of immediate impact on the token's market value.

The increased burn rate is a deliberate effort by the Shiba Inu community to create scarcity, which is often seen as a positive factor for supporting price potential. However, the fact that the token price has not responded to this reduction in supply suggests that other market dynamics may be at play. Traders and analysts have noted that while the burn rate is a significant development, it is just one of many factors influencing the price of SHIB.

The recent activity around SHIB includes a spike in large transactions, with the volume expanding by 46% in a single day. Additionally, daily active addresses increased by 5.5% during the same period, indicating heightened interest and activity within the Shiba Inu ecosystem. These metrics suggest that the community is actively engaging with the token, which could potentially drive future price movements.

The technical patterns and support levels are also being closely monitored. Traders believe that if key support levels, such as $0.00000808, hold into 2025, SHIB could be poised for a major move. Analysts have pointed out that SHIB may be forming a giant double bottom, a classic reversal pattern that could signal a bullish trend if the support level is maintained. However, it is important to note that these are speculative analyses and do not guarantee future price movements.

The overall sentiment around SHIB remains mixed. While the burn rate and community activity are positive indicators, the stagnant price suggests that there may be underlying factors limiting its upward momentum. Investors and traders will continue to watch these developments closely, as the Shiba Inu ecosystem evolves and adapts to market conditions.

Shiba Inu's ongoing burn initiatives focus on burning tokens to potentially increase value. Without institutional or developer engagement, short-term effects remain limited. Historical burn initiatives show similar trends of limited price impact. The community's efforts to reduce supply and support SHIB's value are evident, but the market's response has been minimal. The USD value of burned tokens, around $11,583, is negligible compared to Shiba Inu's vast market cap, and the immediate market effects were minimal, with SHIB’s price largely stagnant or declining slightly. The impact remained limited, partly because burn events have not consistently propelled price rallies in the past.