Shiba Inu (SHIB-USD) finds itself amid a whirlwind of activity. While the community rallies behind an unprecedented burn rate, the token’s price action tells a different story. The SHIB community has set ablaze over 154 million tokens, propelling the burn rate by a staggering 4,000% in just 24 hours.
This initiative is more than just a pyrotechnic display; it’s a strategic move to slash the circulating supply of SHIB, sparking hopes of scarcity-driven price appreciation. The act of burning, effectively removing tokens from circulation forever, signals a strong belief in the project’s long-term value among its backers.
This enthusiastic participation in token destruction underscores a collective effort to engineer a market advantage. Yet, despite this significant token purge, SHIB’s price action remains subdued, lingering around $0.000027 — a condition that mirrors the broader cryptocurrency market’s downturn.
Market Headwinds: SHIB’s Price Struggle Continues
The enthusiasm surrounding the burn rate’s surge has yet to translate into tangible gains for SHIB’s market valuation. A noticeable dip in trading activity, characterized by declining open interest in SHIB futures and a reduction in derivatives volume, suggests a dive in investor engagement, further complicating SHIB’s path to recovery.
However, only some things are bearish. SHIB is still up +168% YTD. Cryptocurrency market analysts and technicians see pullbacks in the memecoin and wider cryptocurrency market as healthy behavior in the long run despite their bearish and negative nature in the near term. Despite the bearish price action, social media and forum volume in Shiba Inu continue to grow and remain active.
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