Shiba Inu Burn Rate Rockets 500% in Rare Upside for Price

Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Read U.TODAY on Google News Shiba Inu (SHIB) has recorded a massive surge in burn rate within the last 24 hours. Shibburn , the platform that tracks the metric, reveals that this deflationary mechanism spiked by 500.68% as 10,491,803 SHIB were sent to dead wallets. Advertisement Is massive SHIB supply limiting impact of burn mechanism? Notably, this burn occurred as a single transaction with all 10.49 million SHIB incinerated in the only activity within the time frame. It is currently unclear if a whale carried out the burn in a move to support price action. The Shiba Inu community has always relied on the burn mechanism as a deflationary tool to stabilize the price. The idea is to reduce the circulating supply with the hopes that the scarcity created could trigger a price rebound on the market. With the recent burn activity, the total Shiba Inu wiped out permanently from the initial supply now stands at 410.75 trillion SHIB. Despite this massive volume that has been sent to dead wallets, the total Shiba Inu supply remains 589.25 trillion SHIB. Out of this, 585,412,056,301,922 SHIB are in the circulating supply, while the remaining 3.833 trillion SHIB have been staked. Shiba Inu Burn Rate | Source: Shibburn The massive volume of Shiba Inu that remains in circulation has caused some to argue that the burn mechanism has not produced anticipated results. Regardless of the volume incinerated, the process does very little to lift Shiba Inu out of a declining phase. The dog-themed meme coin has been battling bearish conditions for a while, and despite repeated burn activity, it added a zero. Some consider the burn activity as statistical noise , given that the process is neither structured nor systemic. It is left to the discretion of the community, so it is not effectively reducing the total SHIB supply. Additionally, even when burn activity is carried out, and there is no buying pressure, the price is unlikely to climb. This sort of defeats the purpose of the mechanism. Shiba Inu price in spotlight As of press time, Shiba Inu has shed 5.1% of its value and exchanges hands at $0.000007181. The meme coin slipped from a daily high of $0.000007571 to its current level as billions of SHIB were moved to exchanges, signaling increased sell pressure. Meanwhile, the on-chain activity from ecosystem whales has reduced significantly. These holders are critical to upward price movement for the meme coin, and their pullback has negatively impacted the price outlook. Another bearish indicator is the plunge in open interest within the last 48 hours. Shiba Inu investors are not confident enough to bet on the meme coin as open interest dipped by over 8%. #Shiba Inu