Zero SHIB Burn Rate in 24 Hours: What It Means for Shiba Inu Price?

by

As a researcher with extensive experience in the crypto market, I find the current state of Shiba Inu (SHIB) both intriguing and concerning at the same time. The token burn mechanism was introduced to increase scarcity and stability, but its impact on the price performance has been minimal, which raises questions about its effectiveness.

The second most popular meme cryptocurrency, Shiba Inu, relies on its SHIB burn feature in an attempt to boost scarcity and create a more stable market price. Since the implementation of token burning, trillions of tokens have been removed from circulation, yet there’s been little impact on the performance of the SHIB price. This leaves many investors worried, as the burn rate has recently dropped to zero on Shibburn, leading them to question how this might affect the value of Shiba Inu.

What’s crucial here is that SHIB needs to excel in the market charts given the increasing rivalry, as newcomers such as Goatseus Maximus are drawing in most of the investors.

Why Is the SHIB Burn Rate at Zero Today?

Approximately two years ago, developers implemented a token-destruction process and have destroyed over 410 trillion tokens since then. Yet, surprisingly, there are still 589.52 trillion tokens in circulation, a massive amount that seems to be hindering its performance. This is why it’s surprising to learn that the SHIB burn rate stands at zero today, as yesterday it surged by an astonishing 6,750%. It’s worth noting that over the past week, the team has destroyed 58,389,212 tokens, which is a significant amount.

It’s suspected by some that there might be an issue with the Shibburn tracker, showing zero on its website. This could be due to the fact that the burning mechanism has been operating autonomously since the start of the year. In essence, when a specific number of transactions are processed on Shibarium and the resulting BONE earnings are accrued, they will later be converted into SHIB and destroyed.

Nevertheless, Shibburn’s recent social media updates confirm no errors in today’s records, leaving the cause unclear. Repeatedly, similar occurrences have taken place in the past.

What Does It Mean for Shiba Inu Price?

Over the past week, the SHIB burn rate has shown a lot of ups and downs, leading to both highs and lows. This pattern suggests that while investors are taking part in the burn process, their efforts seem insufficient. What’s more, the current burning isn’t substantial enough to affect the price of Shiba Inu, given the large amount of supply still available.

As I write this, the SHIB token is being traded at approximately 0.00001765 USD, with a market capitalization of around $10.4 billion. In the past 24 hours, the zero SHIB burn rate has not seemed to affect its price in any significant way, suggesting that the burning process does not have a major impact on Shiba Inu’s price. During the entire week, the token has been in consolidation, moving between $0.00001716 and $0.00001946. This consolidation is likely due to the crypto market returning to its neutral state following a decline in investor sentiment from greed. Additionally, the Bitcoin price rally has stalled, currently sitting at approximately 67.2K USD, despite reaching 69k earlier. This halt in the Bitcoin price rally could also be impacting Shiba Inu’s price movement.

Read More

2024-10-24 16:54