Shiba Inu’s burn rate has dropped to its lowest level in weeks, intensifying focus on its deflationary model. On-chain data shows that fewer than 500 SHIB were removed from circulation in the past 24 hours. The slowdown comes as the SHIB price attempts a short-term rebound. The divergence between weak burn activity and rising prices has drawn attention across the crypto market.
Burn Rate Collapse Leaves Massive SHIB Supply Intact
Data from Shibburn shows that only 483 SHIB were sent to dead wallets within the past 24 hours. The figure reflects a 99% crash in the burn rate. Community activity around token burns remained largely muted during the period.
Shiba Inu has faced sustained volatility in recent weeks. Over the last 30 days, SHIB has declined by more than 28.9%. The prolonged drop has weighed heavily on sentiment and raised concerns about the token’s trajectory.
The burn mechanism aims to reduce the circulating supply and create scarcity. Supporters maintain that consistent burns could stabilize the Shiba Inu price over time. However, the latest figures show minimal impact on overall supply.
With fewer than 400 SHIB eliminated, the circulating supply stands at 585,461,721,722,347 SHIB. The scale of this supply continues to shape the debate around the effectiveness of burns. Even during stronger burn periods, only tens of millions of SHIB get removed, compared to a supply measured in hundreds of trillions.
The sharp slowdown in burn rate underscores the challenge of meaningfully reducing supply. The deflationary narrative remains central to Shiba Inu’s long-term strategy. Yet the current data highlights the limited short-term influence of small burn volumes.
SHIB Price Rises as Volume Surges 14%
Despite the burn rate collapse, Shiba Inu price has recorded gains. Over the last 24 hours, SHIB has climbed 1.67% and trades at $0.000005948. The price move occurred even as burn activity fell to one of its lowest levels in weeks.
Trading volume has also increased significantly. Data shows a 14.52% rise in volume to $145.07 million within the same period. The spike in activity aligns with SHIB entering oversold territory after weeks of decline.
Technical conditions often trigger short-term rebounds when assets reach oversold levels. At the same time, a broader crypto market recovery has supported upward movement across several digital assets.
However, sustainability remains key for Shiba Inu price. If current momentum weakens, the recent gains may prove temporary. Continued strength would signal stronger recovery potential.
The burn rate has long served as a confidence indicator within the Shiba Inu ecosystem. A sustained decline in burn activity during a recovery attempt may affect overall sentiment. For now, SHIB price shows resilience despite minimal token incineration, as the market evaluates the next direction.
Source: https://coinpaper.com/14555/shiba-inu-burn-rate-plunges-99-while-shib-price-defies-supply-slowdown
