Shiba Inu Burn Rate Skyrockets: Will SHIB Price Rebound Last?

The Shiba Inu (SHIB) ecosystem has seen a surge in activity over the past 24 hours as volatility grips the broader cryptocurrency market. One notable development is SHIB’s deflationary mechanism, which has resulted in a significant spike in the token’s burn rate. According to data from Shibburn, SHIB’s burn rate skyrocketed by an astounding 8,193%, as the network takes steps to mitigate the effects of its recent price drop.

3.1 Million SHIB Removed from Circulation

During this period, the ecosystem removed a total of 3,106,197 SHIB tokens from circulation. The burn process involved eight separate transactions, with tokens being sent to dead wallets for incineration. The largest of these transactions saw one million tokens removed in a single batch.

HOURLY SHIB UPDATE$SHIB Price: $0.00001322 (1hr -0.54% ▼ | 24hr -1.91% ▼ )
Market Cap: $7,788,407,677 (-1.92% ▼)
Total Supply: 589,271,258,194,878

TOKENS BURNT
Past 24Hrs: 3,106,197 (8193.59% ▲)
Past 7 Days: 271,093,710 (-30.92% ▼)
— Shibburn (@shibburn) September 11, 2024

As the burn took place, SHIB’s price experienced a brief uptick, reaching a high of $0.00001367 in the early hours of Tuesday.

However, by the afternoon, the price dipped slightly before bouncing back to $0.00001359 in the evening. Despite this recovery, SHIB’s price did not maintain momentum, eventually declining to $0.00001324 at the time of writing. Trading volume also took a hit, dropping by 20.54% to $135.49 million, which reflects reduced demand in the market.

Deflationary Efforts Face Ongoing Volatility

Despite the large-scale token burn, SHIB’s price volatility has persisted. While the burn mechanism temporarily boosted prices, it has not sustained the upward trend.

Analysts attribute this to the overall bearish sentiment in the cryptocurrency market, which continues to weigh on SHIB’s performance. Investors are closely monitoring SHIB’s resistance levels to determine if future burns could lead to more stable price increases.

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In addition to addressing price stabilization, the SHIB development team has launched a new initiative, ShibDev, aimed at supporting developers building on the Shibarium network by providing tools to create decentralized applications.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.