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The Shiba Inu (SHIB) burn rate crashed completely as the ecosystem recorded zero activity in the last 24 hours. Shibburn, the platform that monitors burn activity on the Shiba Inu network, revealed the inactivity even as the price continued its downward journey.
Inconsistent burns leave Shiba Inu supply largely unchanged
Notably, the zero SHIB burn activity is coming barely 48 hours after the metric surged by over 500% as 10,491,803 SHIB were sent to dead wallets. Interestingly, that massive burn activity was carried out in a single transaction, sparking hopes that more might follow suit.
However, just as price fluctuations are common in the crypto sector, the Shiba Inu ecosystem is seeing wild burn fluctuations.
The lack of deflationary moves in the last 24 hours has left the circulating supply at 585,412,585,102,123 SHIB. About 3.83 trillion SHIB remain staked and out of circulation, bringing the total supply to 589,245,695,882,238 SHIB.
The lack of burn activity remains a source of concern to investors as the ecosystem has always used it as a deflationary tool to keep the price stable. Shiba Inu believes that reducing the circulating supply through an increased burn rate could create scarcity and drive up the price.
However, industry stakeholders have faulted this model. They argue that the burn mechanism only looks good in principle but lacks practical impact on the price of SHIB. This is because there are trillions of Shiba Inu that remain in circulation, and the volume that is usually incinerated does not make any dent on this figure.
It appears the burn mechanism is just an inconsistent action carried out to create media hype and play to investors’ sentiments as deflation hardly occurs.
SHIB price slides as whale activity spikes
As of this writing, Shiba Inu is changing hands at $0.000007042, which represents a 2.45% decline in the last 24 hours. Despite the previous burn activity of over 10.49 million SHIB, the price maintained its downward trajectory, slipping from a daily high of $0.00000736 to its current level.
Shiba Inu’s trading volume has also suffered a dip by 18.28% to $126.25 million within the same time frame. The meme coin’s bearish outlook is possibly triggered by increased exchange inflows. A whale reportedly moved 41 billion SHIB to an OKX hot wallet, suggesting increased selling pressure.
Additionally, Bitcoin, the leading crypto asset, has recorded increased dominance with figures at 59.2%. This has exerted selling pressure on altcoins in general, including Shiba Inu.
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