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In a rather unexpected turn of events, the Shiba Inu (SHIB) burn rate has plummeted by a staggering 79.89% in just 24 hours. Once considered the cornerstone of Shiba Inu’s deflationary strategy and a key driver behind the meme coin’s long-term value, this dramatic decline in token burns now sparks serious concerns about what’s behind the sharp drop and its impact on the meme coin’s future price.
Shiba Inu Burn Rate Suffers Dramatic Decline
Shiba Inu’s once-celebrated burn mechanism has recently hit a significant roadblock, with the burn rate crashing almost 80% in just a day. According to Shibburn, the on-chain analytics platform designed to track token burns within the Shiba Inu ecosystem, only 8,258,774 SHIB coins were eliminated in this period. This is a steep drop compared to over 49 million tokens incinerated just a day earlier.
The sudden drop in Shiba Inu’s burn rate comes as the meme coin’s price experiences a significant decline. Notably, Shiba Inu’s burn mechanism is a vital part of its tokenomics model. By sending coins to a dead wallet, SHIB tokens are permanently removed from its large circulating supply, which in turn helps increase scarcity and possibly drive up its price over time.
Unlike projects with protocol-level burn mechanisms, Shiba Inu’s burning process is mainly community-based. This means that the recent drop in burn rate could reflect a negative shift in market sentiment.
Source: Chart from Shibburn
This decline in market sentiment may also be attributed to Shiba Inu’s lacklustre price performance and failure to sustain a meaningful rally in recent months. At the time of writing, SHIB is trading lower alongside many altcoins, reflecting market uncertainty. According to CoinMarketCap, its price is sitting at $0.0000144, representing a sharp 39.8% decline from its yearly high.
Despite the community’s strong presence and analysts’ optimistic projections, sentiment around SHIB appears muted, with CoinCodex data highlighting indifference rather than enthusiasm. If the burn rate continues to decline, particularly after this 79.89% drop, it could erode confidence in the meme coin’s deflationary narrative and future price.
Currently, Shibburn data reports that the total number of SHIB tokens burnt since inception is over 410.7 trillion, leaving approximately 589.2 trillion remaining out of the original maximum supply of over 999.9 trillion.
SHIB Price Targets $0.000035
Despite low prices and burn rate crashes, analysts still view Shiba Inu in a bullish light. One of the latest price predictions by market expert ‘Crypto Catalysts’ on X (formerly Twitter) suggests that the Shiba Inu price could soon see a dramatic surge to $0.000035.
The analyst noted that SHIB is showing signs of strong upward momentum. According to the shared chart, SHIB has been forming a clear accumulation base between $0.000007 and $0.000014. This zone, which previously acted as a launchpad for the meme coin’s explosive rallies in 2021 and 2023, is once again highlighting strength as SHIB aims for a 147% increase to $0.000035.
SHIB trading at $0.000014 on the 1D chart | Source: SHIBUSDT on Tradingview.com
Featured image from Pixabay, chart from Tradingview.com
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