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The Shiba Inu (SHIB) ecosystem has carried out a massive burn exercise in the last 24 hours. An update by Shibburn indicates that the burn rate spiked by 3,915,071% as the ecosystem sent 21.61 million SHIB to dead wallets within this period.
Shiba Inu price struggles despite volume surge
Notably, the Shiba Inu community carries out periodic burn activity as a deflationary mechanism to control circulating supply. The idea is to create scarcity and hope it could trigger a price rebound, particularly during a bear market.
As per Shibburn, a total of 21,611,748 SHIB were removed from circulation, which represents a 0.0037% reduction. This volume, though modest compared to the total circulating supply of 589,246,070,355,443 SHIB, could trigger a significant impact on the crypto market.
As of press time, Shiba Inu was changing hands at $0.000007376, which represents a 1.63% decline in the last 24 hours. Despite the decline, it is worth noting that SHIB previously traded at a low of $0.000007009 before climbing to its current level.
If the community is able to maintain the current burn rate, it could help rekindle the interest of holders. Currently, the trading volume has surged by 52.2% to $195.86 million. This indicates that traders are engaging in the meme coin, and if such momentum continues, SHIB could rebound.
However, the Shiba Inu community has not been inconsistent with its deflationary momentum.
In the past seven days, the total burn rate dropped by 62.99%, as only 23,574,657 SHIB were incinerated. This indicates that the recent burn within the last 24 hours is the largest in one week.
In order for Shiba Inu’s burn mechanism to positively impact price, the community would need to stay consistent in reducing circulating supply. Such consistency could accelerate its rebound journey to $0.000010.
Inconsistent burn activity remains headwind
As Shiba Inu stands, analysts believe deliberate, consistent action is required to push prices back up.
The dog-themed meme coin has cut through all significant levels of support, and most weak hands have nearly disappeared. This might help SHIB, as any rally recorded will be triggered by long-term investors and possibly whales.
As U.Today reported, a Shiba Inu whale recently received 53,591,805,991 SHIB from a Coinbase hot wallet.
The transaction was notable as the whale had been dormant for about a year. Hence, reviving with a transfer worth $415,000 at a time of a market low caught the attention of the community.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team