Shiba Inu Burn Rate Slumps 99%, Will Price Recovery Stall?
Analysis
Price Impact
MedThe 99% slump in shiba inu's burn rate significantly reduces the deflationary pressure, which is a key mechanism for its long-term value. while the price is currently recovering, this fundamental metric moving in the opposite direction suggests underlying weakness and raises concerns about the sustainability of the current rally.
Trustworthiness
HighThe analysis is based on data from shib burn, a recognized tracking platform, and provides a logical connection between burn rates, deflation, and potential price action.
Price Direction
NeutralShiba inu's price is currently in recovery, up over 4% in 24 hours. however, the drastic decline in its burn rate indicates weak underlying demand for burning tokens, which questions the sustainability of this rally and could lead to a stall or reversal in the near future.
Time Effect
LongThe burn rate is a fundamental deflationary mechanism intended to influence shib's supply and value over an extended period. a sustained low burn rate will have a long-term negative impact on price appreciation and the project's deflationary goals.
Original Article:
Article Content:
Cover image via U.Today Read U.TODAY on Google News SHIB price in recovery mode SHIB tokens burnt in mere thousands Advertisement Shiba Inu is gradually reclaiming its bullish position, recovering previous highs seen before the recent market correction, and its burn metric is flashing a contrasting signal. On Wednesday, Jan. 28, data from SHIB's deflationary tracking platform, SHIB burn, shows that 129,617 SHIB tokens have been sent out of circulation over the last day. SHIB price in recovery mode Shiba Inu has shown a major increase in its price after a prolonged correction period, as the broad crypto market begins to move toward a major recovery phase. HOT Stories Breaking: Fidelity Lauching Ripple USD Competitor Morning Crypto Report: XRP Delivers Ultra-Rare $0 Anomaly for Bulls, 429% Bitcoin Price Rise Everyone Forgot About, Shiba Inu (SHIB) Nears Legendary February "Win Streak": What to Expect? Ripple Exec: XRP Will Remain 'At the Heart' of Company Vision Crypto Market Review: Bitcoin's (BTC) Falling Star, Chance for Shiba Inu (SHIB) Bull Run, Is Ethereum (ETH) at $2,800 Unbreakable? While SHIB has now increased by over 4% in the last 24 hours, its burn metric has moved in the opposite direction, sparking fears about what the asset’s next price action could be. Advertisement You Might Also Like Wed, 01/28/2026 - 13:21 352,000,000,000 SHIB in 24 Hours: Shiba Inu Price Might Be Attacked By Arman Shirinyan It is important to note that SHIB burn activity stands as the project’s deflationary mechanism that is targeted at reducing the supply of SHIB tokens from circulation, thereby fueling a potential surge in the token’s market value. When this metric falls, it suggests that demand may be slow, eliminating the need to decisively move the tokens out of circulation, positioning the asset for more downside pressure. Advertisement SHIB tokens burnt in mere thousands While the market has seen millions of SHIB burnt on days when momentum is high, the pullback in this metric has seen only 129,617 SHIB destroyed over the last 24 hours. Notably, the slowdown in SHIB’s burn rate has sparked curiosity across the crypto ecosystem as the data shows that only a few meme coins were transferred to unspendable wallets during the same period. While the ongoing SHIB rally appears to be running on weak network performance, market participants are worried about the sustainability of the rally. #SHIB #Shiba Inu (SHIB) Price Prediction #Shiba Inu (SHIB) News