- SHIB burn rate plunges 93%, shaking investor confidence hard.
- Price drops over 10% as token burns lose impact.
- Small-scale burn transactions fail to influence SHIB’s massive circulating supply.
According to data from Shibburn, Shiba Inu’s (SHIB) deflationary strategy took a significant hit following a sharp collapse in its burn rate. The number of tokens removed from circulation in the past 24 hours dropped by a staggering 93 percent, with only 225,774 SHIB sent to dead wallets.
This sudden decline in burn activity comes as SHIB’s price has also suffered a steep fall of over 10 percent. In the same period, the meme coin, which had been trading at a price range of $0.00001507, fell to a low of $0.00001347.
This twin punch has caused panic among investors who were hoping that frequent burns would cause the value of the token to skyrocket.
When viewed closer, the recent burn transactions have raised an alarming trend. The number of tokens burned was mostly below 500 SHIB. Several of the transfers were around 300 SHIB, and only a single transfer exceeded 100,000 SHIB, adding 149,463 tokens to the burn.
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Low-Volume Burns Add to Investor Concerns Amid Market Dip
Shiba Inu’s burn mechanism is designed to gradually reduce supply, aiming to create scarcity over time. However, the minimal volume of tokens being incinerated has made it difficult to see any immediate effect on price action.
Given that more than 584 trillion SHIB remain in circulation (with a total supply of 589 trillion), the current efforts of burning assets seem to have minor significance.
The rapid decline in price and burn rate has made the community doubt the efficiency of the deflationary pattern. Amidst the hope of long-term holders, current indicators demonstrate that the reduction of supply that was the project’s objective is progressing rather slowly.
Market behavior more generally has also informed investor sentiment, with the price drop seemingly tied to profit-taking and common trends that further stress SHIB’s shaky future. With the number of burns so low, the deflationary strategy provided by the ecosystem is being called into question once again.
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