Shiba Inu ($SHIB) Burn Rate Soars by 12,000% Despite 11% Price Drop in Market Downturn

• The Shiba Inu ($SHIB) token burn rate has surged by an extraordinary 12,000%, reaching 11.9 million tokens, amid a dip in the cryptocurrency’s price.
• Shibburn has reported a massive spike in burn activity, highlighted by a single transaction moving 5.1 million tokens to a dead wallet, permanently removing them from circulation.
• Since its inception, approximately 410.63 trillion SHIB tokens out of the original 1 quadrillion supply have been destroyed as part of its strategic burn mechanism.

Shiba Inu ($SHIB) Token Burn Rate Skyrockets Amid Market Downturn

Shiba Inu Token Burn Rate Hits New Milestone

The Shiba Inu ($SHIB) token burn rate has seen an unprecedented increase of 12,000%, amounting to 11.9 million tokens being burned. This surge in burn rate comes at a time when the price of SHIB, like many other cryptocurrencies, is experiencing a significant decline. According to Shibburn, a specialized platform for tracking SHIB burns, the largest single burn transaction in the last 24 hours involved 5.1 million tokens being sent to a null address, effectively removing them from the circulating supply.

Mechanism and Impact of SHIB Burn

Since SHIB was introduced, it has adopted a burning strategy aimed at reducing the token’s overall supply. So far, around 410.63 trillion tokens have been burnt from an initial supply of 1 quadrillion. This burning is carried out through both automated and manual processes, with the intention of driving the price of SHIB higher over the long term by curbing supply. However, despite the recent spike in the burn rate, SHIB’s price fell by 11% over the past 24 hours, mirroring a broader market downturn that also saw Bitcoin and Ethereum lose value.

Market Reactions and Whale Movements

Despite the aggressive burning strategy, the price of SHIB did not see a corresponding rise. In fact, the cryptocurrency saw an 11% decline over a 24-hour period, reflecting a general bearish trend in the crypto market. During this period, Bitcoin experienced a slight drop of 0.6%, while Ethereum fell by 2.5%. Furthermore, there are signs of considerable selling pressure, with massive whales depositing a significant amount of SHIB tokens on cryptocurrency exchange Coinbase. These moves could indicate a potential sell-off.

Whale Activity and Potential Implications

A closer look at on-chain data reveals that 10 different wallets have collectively deposited 4.29 trillion SHIB tokens worth nearly $100 million on Coinbase. These tokens were accumulated during two distinct periods, September 2021 and March 2024, at an average cost of $0.000013 per token. With SHIB currently trading above $0.000017, a full sell-off could result in substantial profits for these large holders. This comes shortly after another whale began accumulating millions of dollars worth of SHIB tokens, reinforcing the complex dynamics between large-scale investors and the overall market sentiment.

Conclusion

In summary, the Shiba Inu token burn rate has spiked dramatically, yet this has not translated into immediate price gains due to broader market conditions and potential sell-off signals from significant holders. While the burning mechanism aims to decrease supply and theoretically increase demand, market behavior, especially from whale accounts, will play a critical role in determining SHIB’s future price trajectory.