A critical metric for the Shiba Inu (SHIB) community has recently experienced a significant collapse, raising questions about the token's long-term deflationary strategy. According to data from the burn tracking platform Shibburn, the SHIB burn rate has plummeted by an alarming 94.05% over the past week. This dramatic decline means that far fewer SHIB tokens are being permanently removed from circulation, a process essential for reducing the token's massive supply and potentially increasing its value. The daily burn rate shows an even sharper drop of 95.46%, with only 169,895 SHIB tokens burned in a single day, pushing the token into the "red zone."
Price Action Versus Tokenomics
Despite the nosedive in the burn rate, the price of SHIB has shown unexpected resilience. In the past 24 hours, the meme cryptocurrency managed to rebound by 3.25%, reclaiming some of the ground it lost following a recent 12.38% price crash. This divergence between the token's price and its deflationary mechanism highlights the complex and often unpredictable nature of the cryptocurrency market, where price action can be driven by a variety of factors beyond the core tokenomics. While the price rebound is positive for traders, the continued weakness in the burn rate poses a challenge to the community's long-term goals for SHIB.
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Shiba Inu’s Burn Rate Collapses Despite Price Rebound
A critical metric for the Shiba Inu (SHIB) community has recently experienced a significant collapse, raising questions about the token's long-term deflationary strategy. According to data from the burn tracking platform Shibburn, the SHIB burn rate has plummeted by an alarming 94.05% over the past week. This dramatic decline means that far fewer SHIB tokens are being permanently removed from circulation, a process essential for reducing the token's massive supply and potentially increasing its value. The daily burn rate shows an even sharper drop of 95.46%, with only 169,895 SHIB tokens burned in a single day, pushing the token into the "red zone."
Price Action Versus Tokenomics
Despite the nosedive in the burn rate, the price of SHIB has shown unexpected resilience. In the past 24 hours, the meme cryptocurrency managed to rebound by 3.25%, reclaiming some of the ground it lost following a recent 12.38% price crash. This divergence between the token's price and its deflationary mechanism highlights the complex and often unpredictable nature of the cryptocurrency market, where price action can be driven by a variety of factors beyond the core tokenomics. While the price rebound is positive for traders, the continued weakness in the burn rate poses a challenge to the community's long-term goals for SHIB.