Shiba Inu's Price Rises 0.372% Amid 440% Burn Rate Surge

Shiba Inu's latest price was $0.06, up 0.372% in the last 24 hours. The cryptocurrency has seen a significant increase in its burn rate, with a 440% rise in the last 24 hours. This increase, however, resulted in only 375,821 SHIB being removed from circulation across four transactions, indicating a modest impact on the overall supply. The weekly burn rate, on the other hand, has decreased by 62.29%, with approximately 3,047,331 SHIB burned over the past seven days. This decrease in weekly burns suggests a slower pace of supply reduction compared to previous periods.

Despite the increase in the burn rate, the overall deflationary impact remains limited due to the relatively low volume of tokens burned. On-chain analysts attribute this to fewer large burn events and subdued retail activity. The modest burn volumes mean that while the percentage increase in burn rate is notable, the actual reduction in supply is minimal. This situation highlights the importance of not only tracking the percentage increase in burn rates but also considering the absolute volume of tokens burned.

Shiba Inu's market dynamics have been influenced by discussions surrounding a potential ETF launch, which has led to increased transfers of SHIB to cold storage. This development has fueled speculation among investors and the broader cryptocurrency community, although there is no official confirmation of a SHIB ETF submission. The decrease in exchange reserves has impacted investor confidence, with significant amounts of SHIB being moved to cold storage by major holders. This shift in trading behavior reflects the market's response to the potential regulatory and institutional changes that an ETF could bring.

The Shiba Inu community continues to play a crucial role in shaping the token's direction, with community-driven efforts such as token burning and ecosystem enhancements. These initiatives are seen as potential drivers of long-term growth, although market stability also depends on broader economic factors affecting cryptocurrencies. The regulatory landscape remains a critical factor for meme coins like SHIB, and future clarification on regulatory stances could influence investor actions and market decisions.

Shibarium, the layer-2 solution for Shiba Inu, has experienced a significant crash in transaction volumes, with daily activity plummeting from millions to near-zero. This decline was primarily driven by a sharp decrease in user engagement and a security incident that, although contained, shook market confidence. The incident targeted BONE tokens but was prevented by developers, who confirmed that an attempt to steal millions of BONE was stopped. Despite the containment, the event eroded user trust and likely triggered reduced on-chain actions and withdrawals of liquidity.

The security incident has had a notable impact on Shibarium's activity, with daily transactions falling from an average of 3.5 million to 4 million in August to approximately 9,590 on Aug. 28. A brief peak on Sept. 5 recorded about 1.26 million transactions, but by Sept. 16, daily transactions had fallen to 11,600, indicating a sustained collapse in activity. The incident has weakened SHIB's short-term price support, with the token trading around $0.00001298 at press time, down 0.31% over 24 hours, while trading volume declined about 12.6% to $198.91 million.

To rebuild activity and confidence, Shibarium developers are encouraged to communicate transparently about the incident and remediation steps, improve on-chain monitoring, and publish audit findings to restore trust. Incentivizing developers and users with targeted grants, fee reductions, or reward programs, as well as increasing utility through integrations and user-facing applications, could help encourage repeat transactions and rebuild ecosystem momentum. Enhancing the deflationary burn mechanism is also seen as a potential lever to reduce circulating supply and support price, although burns alone cannot replace on-chain activity as a growth driver.

Community sentiment on platforms such as Twitter and Reddit reflects ongoing engagement and concerns regarding SHIB's ecosystem developments. The community's actions, such as token burning and ecosystem enhancements, are seen as potential drivers of long-term growth. However, market stability also depends on broader economic factors affecting cryptocurrencies and the regulatory landscape for meme coins like SHIB. Future clarification on regulatory stances could influence investor actions and market decisions, while community-driven initiatives continue to shape the token's direction.