- Shiba Inu’s token burn rate has dropped to zero, disrupting its supply reduction strategy and fueling concerns amid ongoing price volatility and whale sell-offs.
- Despite increased trading volume, the halt in burns and weakening technical support signal potential prolonged downward pressure on SHIB’s market performance.
Shiba Inu (SHIB), one of the most talked-about memecoins in the cryptocurrency space, has seen its token burn activity come to an abrupt halt. In the last 24 hours, data from Shibburn—a platform that monitors SHIB token burns—showed a complete stop in tokens being sent to dead wallets, signaling a 100% decline in the burn rate. This sudden freeze has ignited fresh concerns among investors and market analysts alike.
The burning mechanism is crucial for Shiba Inu’s supply management strategy. By permanently removing tokens from circulation, the project aims to create scarcity and support price appreciation. However, with no tokens burned recently, SHIB’s supply reduction tactic has stalled, potentially weakening the token’s long-term price resilience.
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This development arrives amid a period of price instability for SHIB. The token has been trading between $0.00001190 and a resistance level of $0.0000130, slipping roughly 2.65% in the past day and losing over 8% since the start of June. The lack of burn activity coincides with growing bearish sentiment, further fueled by the reduced activity from whale holders—large investors who often influence market trends. Reports indicate some whales have begun selling their SHIB holdings, intensifying downward pressure on the token.
Market data also reveals a contrasting surge in trading volume, which jumped by nearly 44% to $154 million during the same period. While higher volume can sometimes signal renewed interest or upcoming price moves, the absence of burn actions clouds the outlook for SHIB’s recovery. Without continued token burns to tighten supply and bolster market confidence, this surge in volume might merely reflect increased selling or speculative trading rather than sustained demand.
Technically, SHIB is now hovering close to a critical support level at $0.000011. If this floor is breached, it could trigger further losses and deepen the token’s bearish trend. Analysts warn that the combination of zero burn activity, whale sell-offs, and technical vulnerability could prolong volatility and challenge SHIB’s short-term price stability.
Earlier, Lucie, Shiba Inu’s marketing lead, had publicly urged the community to ramp up burn efforts, especially on the Shibarium layer-2 platform, as a means to stabilize the token. The current silence on the burn front highlights a disconnect between strategic goals and on-the-ground market behavior, leaving SHIB investors wary.
As the crypto community watches closely, the absence of token burns stands as a red flag in Shiba Inu’s ecosystem. Whether this pause is temporary or signals a deeper shift remains to be seen, but for now, the memecoin faces a testing phase with uncertain prospects ahead.