Shiba Inu Burn Rate Plummets as SHIB Price Dips: What's Going On?
Shiba Inu (SHIB) investors are facing a challenging period. The SHIB price has plummeted 16% in the last week, and concerningly, the Shiba Inu burn rate has also taken a significant hit. This decline in the burn rate is raising concerns within the community about the future price trajectory of the meme coin.
Cetoex News reports that a tough week for the Shiba Inu community has continued as the Shiba Inu burn rate has fallen more than 60%, coinciding with the SHIB price decline. This negative correlation between burn rate and price is worrying many holders.
Recent data paints a grim picture. At one point, the Shiba Inu burn rate dropped 100% in the last 24 hours with zero tokens burned. This complete halt in token burning adds to the bearish sentiment surrounding SHIB. Furthermore, holder data reveals that 55% of SHIB investors are currently underwater on their positions, meaning they are holding the token at a loss.
Interestingly, there have been brief periods of increased burn activity. For example, the Shiba Inu burn rate surged 2025% on Tuesday with 20 million tokens removed from circulation. However, this surge provided little relief, as the SHIB price was down 3% despite the burn rate increase.
Shibburn data shows an 88% decline in the burn rate over the last 24 hours. Fewer than 25 million SHIB tokens, currently worth less than $400, have been burned this recent period, highlighting the drastic slowdown in burning compared to previous months.
The Shiba Inu burn rate has fallen significantly over the past few months, causing traders to question their interest in the token. A number of factors may have contributed to this decline, including decreased trading volume, reduced profitability for burners, and a shift in community focus.
The combination of a falling price and a declining burn rate presents a complex challenge for the Shiba Inu community. It remains to be seen whether future developments or shifts in market sentiment can revitalize the burn mechanism and positively impact the SHIB price.