Shiba Inu has experienced a complete halt in its token burn activity, raising fresh concerns among market observers. In the past 24 hours, not a single SHIB token was moved to a dead wallet, marking a 100 percent decline in the burn rate.
According to data from Shibburn, a platform that tracks token burn transactions, the sudden pause in SHIB burn activities comes amid price instability. This development follows a public call for increased burn efforts on Shibarium by Lucie, the project’s marketing lead.
SHIB prices remain volatile between the resistance point of $0.0000130 and the current level of $0.00001190. The coin has decreased by 2.65 percent in the previous 24 hours and more than 8 percent since the beginning of June.
In addition to the plunge in prices, whales have also reduced their activity in the SHIB market, contributing to market jitters. It is also reported that some of the large holders have started selling their holdings, which has led to a bearish attitude and bearish pressure on the token.
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Zero Token Burn Disrupts SHIB Supply Strategy
Shiba Inu relies on a burn mechanism to reduce token supply, aiming to support price growth through scarcity. The complete lack of burn activity has disrupted this strategy, leaving SHIB vulnerable to further price corrections.
Despite the price dip, trading volume surged by 43.92 percent, reaching $154 million within the same period. The sharp increase in the volume indicates potential enhanced trader activity, but the deficiency of helpful burn moves mars the long-term recovery attempt.
Besides, it has come close to the support of $0.000011, which may accelerate a further downward movement in case of its breach. The technical outlook is risky at present, especially without uniform burn rates and open buyer support.
Sale Whales have contributed to pressure on the already struggling SHIB momentum. This combination implies that the token may continue to be under pressure without a simultaneous undertaking of burn operations and market trust.
The failure of Shiba Inu to facilitate any form of burning activity in the past 24 hours has destabilized deflationary behaviour. Large holders have backed off, and the levels of technical support are being tested, so SHIB might experience prolonged volatility in the future.
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