The Shiba Inu burn rate has experienced a drastic reversal, dropping by over 99% in the past 24 hours following a record surge. Just a day after witnessing a 27,660% burn spike, the rate has fallen sharply, with only 2.8 million SHIB removed from circulation.
According to data from Shibburn, the Shiba Inu burn rate soared to unprecedented levels, with over 535 million SHIB destroyed over the past week, marking a 416% increase.
The highest single-day burn event removed 503.3 million SHIB, significantly reducing the circulating supply. However, the latest figures indicate a sharp downturn, with a 99.44% decline in the burn rate over the last day.
The sudden drop comes amid a series of large transactions that initially fueled the burn rate. The most significant burn involved 459.2 million SHIB, followed by three additional burns totaling 14.6 million, 12.8 million, and 13.6 million SHIB, respectively.
Despite these efforts, the burn rate has failed to sustain its upward momentum, leading to a sharp decline in overall token removals.
Community Push for More Aggressive Burns
The SHIB community has long advocated for larger, sustained burns to reduce supply and drive price appreciation.
Many within the community believe that unless billions of SHIB are burned consistently, achieving the token’s long-term price targets will be nearly impossible. The current circulating supply remains high at 584.3 trillion SHIB, leaving significant room for further reductions.
Market sentiment has been mixed in response to the fluctuating burn rate. While the recent surge initially pushed SHIB’s price up by 7.45% to $0.00001273, the steep decline in burn activity raises concerns about the sustainability of these gains. The market cap has also slightly fluctuated, currently at $7.5 billion.
The rapid decline in burn activity highlights the volatility of Shiba Inu’s supply reduction strategy. While large burns can create temporary price spikes, a more structured and sustained approach may be necessary to achieve long-term price appreciation.
The SHIB community now looks to upcoming burn initiatives and Shibarium’s gas fee mechanisms to provide more consistent token removals and stabilize the burn rate.
For now, the dramatic drop in burn activity signals uncertainty for SHIB’s deflationary trajectory, leaving investors and the broader community watching closely for the next major burn event.
