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Shiba Inu (SHIB) has seen its price plunge to $0.00001035 over the last seven days, with many investors fearing it could add another zero. Amid this growing concern, the SHIB ecosystem’s deflationary burn outlook has also crashed by 99%.
SHIB price rebounds despite deflation drop
Notably, the burn mechanism is Shiba Inu’s way of controlling the internal supply of tokens in the ecosystem. By incinerating tokens, it helps reduce the circulating supply, which, when matched with demand, usually supports price increases.
However, in the last 24 hours, this deflationary mechanism has dropped by 99.32%, according to data from Shibburn. The platform, which tracks burn rate, reveals that only 101,213 SHIB were sent to wallets that are no longer active.
This indicates that users in the Shiba Inu community did not reduce the circulating supply within the specified time frame.
Shiba Inu’s total supply currently stands at 589,249,849,217,081 SHIB, with 584,530,878,291,681 SHIB still in circulation. The remaining 4,718,970,925,400 SHIB have been staked in the ecosystem.
Interestingly, despite witnessing a small burn rate, Shiba Inu has recorded a significant uptick in value. SHIB has climbed from a low of $0.00001151 to reach a peak of $0.00001178 in the last 24 hours of trading. As of press time, it was exchanging at $0.00001166 due to market volatility.
Shiba Inu may attempt to reach higher levels if it receives ecosystem support, such as an increased burn rate or higher trading volume. SHIB’s volume is currently down by 2.57% at $110.01 million.
Shiba Inu bullish indicators could support recovery
Shiba Inu has potential for a rebound as some bullish patterns emerged within the week. For instance, CryptoQuant data revealed that the Shiba Inu exchange reserve surged to $929 million. The uptick in reserve amount suggests increased interest in the meme coin and potential for possible gains.
There has also been an increase in open interest as market participants bet heavily on Shiba Inu’s futures market. Investors anticipate the meme coin to remain resilient and stay above the $0.000011 support level.
Vladislav Sopov
U.Today Editorial Team