Shiba Inu Burn Rate Drops 95% as Price Struggles to Recover

TLDR

• Shiba Inu’s burn rate dropped by 95% over the past week, causing concerns within the community.
• Only 9.43 million SHIB tokens were burned in the past week, significantly lower than previous figures.
• Daily burn activity also saw a drastic decline of 95%, with just under 170,000 SHIB removed in 24 hours.
• Despite the burn rate collapse, Shiba Inu’s price recovered slightly, increasing by 3.25% within a day.
• SHIB’s price has mirrored Bitcoin’s movements closely, following its fluctuations in recent days.

Shiba Inu has encountered a significant setback as its burn rate plummeted by nearly 95% in the past week. According to data from Shibburn, the weekly burn activity dropped by about 94%, with only 9.43 million SHIB tokens removed from circulation. In addition, daily burns weakened drastically, down by 95%, leaving just under 170,000 SHIB destroyed in 24 hours. Despite these declines, SHIB’s price managed a modest recovery, though the future remains uncertain for the meme coin.

Shiba Inu Burn Rate Plummets by 95%

The Shiba Inu burn rate has seen a steep decline recently. According to Shibburn’s data, only 9.43 million SHIB tokens were burned in the past week, compared to significantly higher numbers in previous weeks. This sharp decrease represents a drop of approximately 94% in weekly burn activity.

In daily burn activity, the situation is even more concerning. Only 170,000 SHIB tokens were removed from circulation over the course of 24 hours, reflecting a 95% drop. As burn rates are central to SHIB’s long-term appeal, this sharp decline raises concerns within the community.

Burning SHIB tokens has long been a key talking point for the community, with supporters highlighting the role it plays in reducing the total supply. However, the recent collapse of burn activity has left many questioning whether this mechanism will continue to sustain the token’s value in the future.

SHIB’s Price Sees Small Recovery

Despite the significant drop in the Shiba Inu burn rate, the token’s price managed a slight recovery. After falling by more than 12% over the weekend, SHIB bounced back with a 3.25% increase within a single day. However, this recovery proved short-lived, as the price slipped by about 1% soon after.

As of now, SHIB is trading at $0.00001210, marking a minor rebound. While this recovery suggests there’s still some buying interest in the token, the overall market trend remains uncertain. The price of SHIB has mirrored the movements of Bitcoin closely, reacting to the cryptocurrency’s fluctuations.

The recent price recovery offers some optimism to traders, but it also highlights the importance of burn momentum. Without a stronger burn rate, sustaining this upward price movement may prove challenging for Shiba Inu in the long run.

Shiba Inu Community Faces Crucial Test

With the burn rate weakening significantly, the Shiba Inu community now faces a crucial challenge. The key question is whether the community can reignite the burn mechanism or risk losing one of SHIB’s most appealing value propositions. Burn activity has been central to SHIB’s market narrative, and without it, the token may struggle to maintain its position in the competitive cryptocurrency space.

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