Shiba Inu is gradually reclaiming its bullish position, recovering previous highs seen before the recent market correction, and its burn metric is flashing a contrasting signal.
On Wednesday, Jan. 28, data from SHIB's deflationary tracking platform, SHIB burn, shows that 129,617 SHIB tokens have been sent out of circulation over the last day.
SHIB price in recovery mode
Shiba Inu has shown a major increase in its price after a prolonged correction period, as the broad crypto market begins to move toward a major recovery phase.
While SHIB has now increased by over 4% in the last 24 hours, its burn metric has moved in the opposite direction, sparking fears about what the asset’s next price action could be.
It is important to note that SHIB burn activity stands as the project’s deflationary mechanism that is targeted at reducing the supply of SHIB tokens from circulation, thereby fueling a potential surge in the token’s market value.
When this metric falls, it suggests that demand may be slow, eliminating the need to decisively move the tokens out of circulation, positioning the asset for more downside pressure.
SHIB tokens burnt in mere thousands
While the market has seen millions of SHIB burnt on days when momentum is high, the pullback in this metric has seen only 129,617 SHIB destroyed over the last 24 hours.
Notably, the slowdown in SHIB’s burn rate has sparked curiosity across the crypto ecosystem as the data shows that only a few meme coins were transferred to unspendable wallets during the same period.
While the ongoing SHIB rally appears to be running on weak network performance, market participants are worried about the sustainability of the rally.
Alex Dovbnya
Caroline Amosun
Godfrey Benjamin
Tomiwabold Olajide
Gamza Khanzadaev