Shiba Inu has experienced a significant surge in burn rate, increasing by 2,713% in the last 24 hours. Data from Shibburn, the protocol's official burn tracker, confirms the spike. Shiba Inu burned 4,764,442 tokens during this period.
Even with such a large reduction in supply, the price trend of SHIB remains modest. The token is trading at 0.00001004 at the time of writing, indicating a 3.74% increase in the last 24 hours. Market observers were hoping for a stronger price reaction to the burn activity.
According to Shibburn data, the current circulation stands at 585,223,355,575,185 coins. The rest of the supply is decreasing as the burn mechanisms are going on in the network. Community-driven burns and transaction fees contribute to the ongoing reduction of the circulating supply.
The burn mechanism permanently removes tokens from circulation. This creates the pressure of supply, which in most cases favors the rise in price. Nevertheless, the burn has not been translated into instant price movement as per the contemporary market conditions.
Weekly Burns Show Sustained Activity
The seven-day burn total reached 50,786,799 tokens. Such a long run period of high burn activity shows a consistent attempt at trying to lower supply. Since its launch, the Shiba Inu ecosystem has destroyed 410,752,702,962,590 tokens.
Shiba Inu Supply, Source: Shibburn
The inconsistency between the growth in burn rate and price performance raises questions about market dynamics. Traditional laws of supply and demand suggest that a low supply will result in higher prices. However, other factors influence SHIB's valuation in the current environment.
Market sentiment is a crucial factor in determining the performance of meme coins. Price movements are influenced by trading volume, whale activity, and general trends in cryptocurrencies. The burn rate alone cannot drive sustained rallies without supportive market conditions.
Shibarium Development Offers Future Catalysts
Shibarium, the Layer-2 scaling solution for Shiba Inu, continues its development roadmap. The platform intends to repay $4 million to victims of a recent exploit. The purpose of this move is to regain trust in the ecosystem.
Another major milestone is the Ethereum bridge restart. Compared to the main Ethereum network, Shibarium enables faster and cheaper transactions. Bridge functionality bridges between the two networks and enables transfers between assets.
