Shiba Inu Burn Rate Hits Multiweek Low as Network Activity Falls

Shiba Inu (SHIB) has witnessed another near-total collapse in its deflationary mechanism, the burn rate, the lowest level in weeks. In the last 24 hours, this important metric experienced a 99% crash as fewer than 500 SHIB were incinerated. Despite the lack of burn activity, SHIB’s price has shown an interesting outlook.

Shiba Inu burn activity drops amid volatility concerns

As per data from Shibburn, a platform that tracks the metric, only 483 SHIB were sent to dead wallets within this period. This figure indicates that community members were inactive and ignored the burn activity, which has been largely considered to stabilize the price outlook.

In the last 30 days, Shiba Inu has battled volatility concerns and continued on a downward movement. The meme coin has shed over 28.9% of its value within this time frame, with many investors worried about the future outlook.

Hence, regular burn activities are one way to reassure traders of a potential price reversal. The idea is to reduce the circulating supply of Shiba Inu and create scarcity. This, it is believed, could support price stability and possibly increase it.

Shiba Inu Burn Rate | Source: Shibburn

With less than 500 SHIB eliminated from the total Shiba Inu supply, the circulating supply remains at 585,461,721,722,347 SHIB. This massive volume of SHIB still in circulation has prompted debate about the relevance of the deflationary mechanism.

As U.Today reported, there are those who argue that the burn surge does not even matter, as it only sounds great on paper. They insist that a surge in burn rate does not bring the expected result in price, as the total Shiba Inu volume remains staggering. While this figure is in the hundreds of trillions, only tens of millions of SHIB ever get incinerated.

SHIB price climbs despite 99% burn crash

Interestingly, despite the 99% collapse in burn rate, Shiba Inu’s price has registered a slight uptick. In the last 24 hours, fewer than 500 SHIB have been burned, and Shiba Inu has climbed by 5.14% and is trading at $0.000006115.

You Might Also Like

The meme coin’s trading volume has also registered a 14.52% surge to $145.07 million within the same time frame. The primary reason for this increase is that Shiba Inu is in oversold territory.

This coincides with a slightly broader market recovery, which has supported upward momentum for the dog-themed meme coin.

SHIB’s price rally is likely to be short-lived if the meme coin fails to sustain current momentum. Some have argued that, regardless of doubts about the burn rate’s effect on price, the metric has a way of boosting investor confidence.

Thus, a collapse of this metric at a time when Shiba Inu is pushing for a reversal might not help the meme coin.

Source: https://u.today/shiba-inu-burn-rate-hits-multiweek-low-as-network-activity-falls