TLDR
SHIB burn rate increased by 4,100% in 24 hours, with 21.7 million tokens burned
Single transaction drove the massive burn, removing 21 million tokens at once
Despite high burn rate, SHIB price fell 11% to $0.00002168
Whale activity surged 2,000% with $750 million in SHIB transactions
Market cap stands at $12.4 billion amid broader crypto market volatility
A surge in Shiba Inu’s token burning activity has caught the attention of crypto watchers, even as the popular meme coin’s price continues to decline. In a remarkable 24-hour period, the burn rate for SHIB tokens jumped by 4,100%, resulting in nearly 21.7 million tokens being permanently removed from circulation.
The dramatic increase in burning activity was primarily driven by a single large transaction that eliminated approximately 21 million SHIB tokens from the available supply. Token burning, a practice where cryptocurrencies are sent to unusable wallet addresses, effectively removes them from circulation forever.
Data from tracking platform Shibburn shows the weekly burn rate has also seen an uptick, with more than 104 million tokens destroyed over the past seven days, marking an 86.58% increase compared to the previous week.
HOURLY SHIB UPDATE$SHIB Price: $0.00002372 (1hr -0.06% ▼ | 24hr -2.13% ▼ )
Market Cap: $13,977,981,987 (-1.97% ▼)
Total Supply: 589,257,014,659,157
TOKENS BURNT
Past 24Hrs: 21,709,094 (4100.35% ▲)
Past 7 Days: 104,230,574 (86.58% ▲)
— Shibburn (@shibburn) January 8, 2025
Despite this aggressive reduction in supply, the price of SHIB has moved in the opposite direction of what many investors might expect. The token’s value dropped by 11% during this period, settling at approximately $0.00002168.
The price decline occurred against a backdrop of broader market turbulence, with the crypto sector experiencing more than $711 million in liquidations across various assets. This suggests that larger market forces are currently overshadowing the potential price impact of reduced token supply.
Whale activity in the SHIB ecosystem has seen a dramatic increase alongside the elevated burn rate. Large holder transactions surged by over 2,000%, with roughly $750 million worth of SHIB changing hands within 24 hours. This spike in whale movements indicates that major players are either accumulating tokens or redistributing their holdings in response to market conditions.
Shiba Inu Price on CoinGecko
The current market capitalization of Shiba Inu stands at $12.4 billion, reflecting the token’s position as one of the larger players in the cryptocurrency market despite recent price pressures.
Trading volume has remained robust throughout this period, suggesting continued interest from both retail and institutional investors in the token. The increased activity comes as the broader cryptocurrency market experiences heightened volatility.
The burn mechanism has been a central feature of Shiba Inu’s tokenomics since its inception. By regularly reducing the total supply, the protocol aims to create scarcity that could potentially support token value over time.
Recent data from blockchain analytics platforms indicates that the pace of token burning has been accelerating in recent months. This trend aligns with the project’s stated goals of gradually reducing the total supply over time.
The Shiba Inu community, known for its active participation in the ecosystem, has continued to support burning initiatives through various community-driven programs. These efforts have contributed to the steady reduction in token supply over time.
Market observers note that while burning activity traditionally aims to support price appreciation through supply reduction, the immediate market impact can be limited by other factors such as overall market sentiment and macroeconomic conditions.
The recent price movement demonstrates that token burns, even of this magnitude, may not always translate directly into price increases, particularly during periods of broader market volatility.
Technical analysis of SHIB’s trading patterns shows that the token has been following similar trends to other major cryptocurrencies, suggesting that macro factors currently have a stronger influence on price than token-specific events.
As of the latest market data, SHIB continues to maintain its position among the top cryptocurrency assets by market capitalization, despite the recent price decline and broader market uncertainty.
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