Shiba Inu Burn Rate Plummets to Zero—What’s Behind the SHIB Price Crash?

• SHIB burn rate stalls, leaving investors anxious amid price decline.
• Whale moves 41 billion SHIB, adding selling pressure to market.
• Inconsistent burn strategy raises doubts about Shiba Inu’s long-term viability.

The Shiba Inu (SHIB) burn rate has come to a screeching halt, as no burns were recorded in the last 24 hours. This sudden drop in burn activity comes just 48 hours after an impressive surge, where over 10 million SHIB tokens were sent to dead wallets in a single transaction. The stark contrast between these two burn events has left many investors concerned, especially as the SHIB price continues its downward spiral.

According to Shibburn, the platform that tracks burn activity, this zero burn rate marks a major shift in the Shiba Inu ecosystem, which has relied heavily on burns to reduce its massive circulating supply. However, the lack of any deflationary actions in the past day has failed to alleviate the already large supply, which remains at over 585 trillion SHIB tokens in circulation.

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Is the Shiba Inu Burn Strategy Losing Its Effectiveness?

The burn mechanism has long been seen as a key strategy for Shiba Inu, with the belief that reducing the supply will increase scarcity and ultimately drive up the price. However, recent developments are casting doubt on whether the burn strategy can make a real impact. Despite a large portion of the SHIB supply being staked and out of circulation, the circulating supply remains enormous, meaning that even significant burns have little to no effect on price movement.

While many in the Shiba Inu community had hoped the recent burn spike would spark more action, the lack of follow-through is raising concerns. Even though SHIB saw a massive burn of over 10 million tokens recently, the price continued to decline, falling by 2.45% in the last 24 hours. Currently, SHIB is trading at $0.000007042, and the overall trading volume has decreased by 18.28%.

Whale Activity Contributes to SHIB’s Bearish Outlook

The situation has also been exacerbated by increased whale activity, with a massive 41 billion SHIB moved to an OKX hot wallet, signaling a potential increase in selling pressure. This has contributed to the overall bearish sentiment surrounding SHIB, and experts are questioning whether the burn strategy can truly help the coin regain stability.

With price fluctuations becoming more pronounced and the burn strategy proving inconsistent, Shiba Inu’s future remains uncertain. Investors are now left wondering if the ecosystem can recover or if the burn mechanism is simply a temporary fix, doing little to address the underlying issues affecting SHIB’s market performance.

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