The Shiba Inu ecosystem experienced a complete halt in token burn activity over the past 24 hours. Shibburn, the tracking platform for SHIB burns, confirmed zero tokens were sent to dead wallets during this period. The stagnation occurred while the meme coin’s price continued its downward movement.
This sudden drop in burn activity stands in stark contrast to recent developments. Just 48 hours earlier, the burn rate had surged by over 500%. A single transaction eliminated 10,491,803 SHIB tokens from circulation. The massive burn had sparked optimism among investors about sustained deflationary pressure.
The cryptocurrency market frequently experiences volatility. The Shiba Inu burn mechanism appears equally unpredictable. Without any new burns in the past day, the circulating supply remains fixed at 585,412,585,102,123 SHIB. An additional 3.83 trillion tokens stay locked in staking protocols. This brings the total supply to 589,245,695,882,238 SHIB.
Burn Mechanism Faces Growing Skepticism
Token burns have long served as a cornerstone of the Shiba Inu strategy. The ecosystem relies on this deflationary tool to reduce supply and theoretically increase value. Developers and supporters believe that creating scarcity through burns will drive price appreciation.
However, critics question the practical effectiveness of this approach. Industry analysts point out that trillions of SHIB tokens remain in circulation. The volumes typically burned represent a minuscule fraction of the total supply. Even substantial burn events fail to create meaningful scarcity.
Price Action Reflects Broader Market Pressures
Shiba Inu currently trades at $0.000006853. The price has declined 5.54% in the past 24 hours. The recent burn of over 10.49 million tokens failed to reverse the bearish trend. SHIB dropped from a daily high of $0.00000736 to its present level.
Trading volume tells a similar story. The metric decreased 18.28% to reach $126.25 million. Lower volume often signals reduced market interest and weaker buying support.
Whale activity has contributed to the selling pressure. One large holder transferred 41 billion SHIB to an OKX hot wallet. Such movements typically indicate preparation for selling. Exchange inflows from whales often precede price declines as supply on trading platforms increases.
Source: https://coinpaper.com/14194/shiba-inu-price-drops-over-5-as-burn-rate-crashes-to-zero
