The last few months have not been the best time period for Shiba Inu as the token's value has been rapidly descending in the last five months. A large part of the problem was tied to a decline in burning volume that has been fueling the recovery of SHIB on the market. Luckily, the situation is finally changing.
According to Shibburn, the burn rate on the network has spiked massively. The most recent data shows that SHIB saw a massive 910% burn spike in the last 24 hours, making it one of the biggest burn increases in the last few weeks.
The main burning address ending with 3963d removed more than 5 million tokens from the network's circulation, making it the biggest contribution to the amount of Shiba Inu burned in the last 24 hours.
How does price react?
Unfortunately, the massive percentage spike in burning volume did not cause a corresponding effect on the market. Shiba Inu continuously moves below the local resistance level reflected on the 21-day moving average.
The depressed price performance is a result of the massive outflow of funds from the cryptocurrency market and the total forsaking of retail portfolios all over the digital asset industry. Traders and investors have been rapidly selling their holdings since the beginning of this year, and high-risk assets like Shiba Inu were one of the first digital investment tools to be gone from their wallets.
At press time, Shiba Inu is trading at $0.000009, below the important psychological threshold of $0.00001. Unfortunately, the amount of burned SHIB tokens we have now is not enough to cover the existing surplus of supply, which has continuously pushed the price of the meme token down.