Shiba Inu (SHIB) Skyrockets 8,596% in Major Metric - Here's Why

Shiba Inu (SHIB) has witnessed a massive increase in one of its most important metrics. Its token burn rate has skyrocketed 8,596.57% in the last 24 hours, per Shibburn. This latest token burn comes at a time when the SHIB price has been struggling to gain momentum.

Over 17.7 million Shiba Inu tokens have been burned during this time. Moreover, nearly 410 trillion coins have been burned from the initial supply. As of writing this article, the circulation supply of SHIB is 583 million tokens.

The Shiba Inu team aims to positively impact the price and market capitalization by sending all of these coins to dead wallets and reducing the circulation supply. It also helps in making the SHIB ecosystem more efficient and sustainable. Additionally, burning more SHIB tokens increases the scarcity of the coin.

It creates an imbalance in supply and demand, which makes the token deflationary in nature. Consequently, it may help in increasing the price of the coin over the long term. However, this is not a guaranteed scenario, as other factors also come into play.

SHIB price outlook

While the 8,596.57% jump in token burn rate is significant, it has not left an impact on the price of SHIB yet. As of now, the meme coin is trading at $0.00001685, and it is down 1.76% in the last 24 hours. However, the Shiba Inu price has plummeted 32.80% over the last 30 days.

This is a huge decrease in the price, and it has caused worry in the community. The current bearish trend for SHIB mirrors broader market sentiment. The crypto market has remained in the lows owing to certain macroeconomic concerns.

The SHIB price will need more than the rising token burn rate to rebound from its current levels. Moreover, token burning events leave their impacts in the long term, so we may not witness any major price movement from the coin in the short term.