Shiba Inu Burn Rate Surges 16715% as SHIB Price Dips 5.03% to $0.00001348

Shiba Inu (SHIB) experienced a dramatic surge in token burn activity, with the 24-hour burn rate spiking by 16,715%—a figure attributed to the permanent removal of 601 million tokens from circulation [1]. This marked a sharp acceleration in deflationary efforts, surpassing the previous week’s 368.98% increase in burn volume. Despite the aggressive reduction in supply, SHIB’s price declined 5.03% over the same 24-hour period, trading at $0.00001348 as of reporting. The token also saw a 0.35% drop in the last hour alone, with its market capitalization falling to $8.01 billion [2].

The failure of price to align with burn momentum has raised questions about the effectiveness of supply reduction in driving immediate value. Analysts note that SHIB’s total supply remains vast at 589.2 trillion tokens, meaning sustained burn activity will be required to meaningfully impact price dynamics [1]. Weekly burn rates, while elevated, have not yet translated into a clear upward trend, highlighting the challenge of balancing deflationary mechanisms with market demand.

Technical indicators further complicate the outlook. SHIB’s price has struggled to break above the $0.00001411 resistance level, which has repeatedly capped upward movement. Meanwhile, support at $0.00001300 has held firm, with multiple bounces from that threshold suggesting temporary buyer interest. However, a breakdown below $0.00001300 could trigger further declines, while a sustained move above $0.00001411 might signal a short-term recovery [2].

The divergence between burn activity and price performance underscores the volatility inherent in meme-based cryptocurrencies. While large-scale token burns are often marketed as tools for long-term value preservation, the current data suggests market sentiment remains bearish in the short term. Analysts emphasize the importance of monitoring key technical levels to gauge investor confidence but caution against over-reliance on burn metrics as standalone indicators of price direction [1].

Sources:

[1] Shibburn

[2] CoinMarketCap Community Article (https://coinmarketcap.com/community/articles/6888aab3d58b8b24ae7ab1ca/)