Shiba Inu’s burn rate recorded a dramatic spike in the last 24 hours, with over 172 million SHIB tokens permanently removed from circulation, a 53,000% increase over the prior period. Despite the headline-grabbing figure, the token’s price has not responded in kind.
SHIB is trading around $0.00000540, down approximately 2.73% in the last 24 hours. The broader crypto market, weighed down by Bitcoin’s retreat, has pulled altcoins lower across the board. SHIB has not been spared.
The Burn Math: Why 172 Million Tokens Barely Moves the Needle
The 172 million tokens removed sounds significant in isolation. In context, it is not. SHIB has a circulating supply exceeding 585 trillion tokens. The recent burn reduced that supply by approximately 0.00003%.
That figure is not a rounding error, it is the core challenge facing SHIB’s deflationary model. For burns to exert meaningful upward pressure on price, the rate of destruction would need to be sustained at far higher volumes, over an extended period, or be paired with strong ecosystem demand through Shibarium, the project’s Layer-2 blockchain.
Single-day burn events, even dramatic ones, do not change the supply-demand equation in any measurable way at this scale. Investors watching burn metrics as price catalysts should treat isolated spikes with caution.
Chart Signals Flash Warning as Key Support Comes Under Pressure
The technical picture adds another layer of concern. SHIB has slipped beneath its short and mid-term moving averages, a pattern that typically indicates sellers have the upper hand. Price is currently testing support at $0.00000545.
That level carries weight. A hold there opens the door to a short-term bounce toward $0.00000560, particularly as momentum indicators approach oversold territory. Oversold readings do not guarantee a reversal, but they can attract short-term buyers looking for a technical rebound.
If that support fails, attention shifts to $0.00000530. A confirmed break below that level would establish another lower low on the chart, a bearish structural signal that could invite further selling. Trading volume recently hit approximately $179 million, a figure that reflects active participation but skews toward distribution rather than accumulation, given current price direction.
Source: https://coinpaper.com/15233/shib-burn-rate-jumps-53-000-but-price-drops-over-2-here-s-why-it-doesn-t-matter
