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While the crypto market is discussing Shiba Inu's (SHIB) sudden daily price surge of nearly 40%, another record has been set inside the ecosystem itself — an abnormal deflationary wave. Over the past 24 hours, the meme coin's burn rate posted a vertical spike of 5,223.98%, permanently destroying 401,219,021 tokens, according to SHIBBurn portal.
Such aggressive pressure completely rewrote the weekly statistics, which had previously looked rather sleepy. Over the past seven days, the burn rate increased by 816.02%, removing 457,511,537 SHIB from circulation.
Decoding SHIB's 5,223% overnight burn rate spike
Comparing these figures reveals some amusing math, as almost the entire weekly burn volume went up in smoke during the past 24 hours alone. Most interestingly, the conveyor belt is not stopping for even a minute. Just one transaction over the past hour sent another 34,738,227 tokens to a burn address.
At the same time, complete madness was unfolding on exchanges. SHIB recorded a net daily gain of 27.14%, although at the peak of the excitement, the price jumped by as much as 36%.
As a result, SHIB settled at $0.00000540. Supported by a massive trading volume of $700 million, its market capitalization climbed to $3,179,718,980, bringing the asset back to around 25th place in CoinMarketCap's global rankings.
However, it is important to apply cold calculation here and not confuse cause with effect. The hundreds of millions of burned tokens are physically incapable of moving the coin's price. They represent a microscopic drop in an endless ocean, as SHIB's total supply still stands at an astronomical 589,159,143,761,521 tokens.
The real mechanism works in the opposite direction. It was the powerful spike in spot market trading activity that drove higher volumes and the accompanying transactions. Nevertheless, the impressive and intimidating figure of 5,223% acted as an extremely powerful psychological factor for holders.
The market's attention is now focused on SHIB's price behavior across spot exchanges and whether the current momentum can be sustained by new buyers or mass profit-taking will push the price back down to the low $0.0000040s.
Dan Burgin
U.Today Editorial Team
