Key Highlights
- 19.16 million SHIB tokens burned in 24 hours, driving a 1734% spike in burn rate.
- Circulating supply tightens to 584.37 billion SHIB amid declining Shibarium transactions.
- Bearish sentiment persists: Open Interest stagnates, and short positions dominate futures markets.
Explosive Token Burns Amid Shrinking Demand
Over 19 million Shiba Inu (SHIB) tokens were permanently removed from circulation Monday, intensifying deflationary pressure on the meme coin. According to Shibburn, the official burn tracker, the 24-hour incineration rate skyrocketed 1,734%, eliminating 19.16 million SHIB.
How Token Burns Work
- Tokens are sent to unrecoverable wallets to reduce supply.
- Objective: Create scarcity to potentially boost value—if demand follows.
- Current status: 410.74 billion SHIB burned lifetime; circulating supply at 584.37 billion.
👉 Why token burns alone won’t guarantee price rallies
Shibarium Activity Declines Despite Milestones
The burn surge contrasts with a 28% drop in transactions on Shibarium, SHIB’s Layer-2 blockchain. Notably:
- A portion of Shibarium fees are automatically burned.
- The network processed 1 billion transactions earlier this month.
Market Sentiment Turns Cold
- Futures data: Open Interest barely moved, per Coinglass.
- Long/Short Ratio below 1 signals dominant bearish bets.
- Whale activity down: High-value transactions (>$100k) fell 9% (IntoTheBlock).
Price Performance and Outlook
As of latest data:
- SHIB price: $0.00001193 (-1.90% daily).
- YTD decline: 45%, underperforming broader crypto markets.
FAQ: Shiba Inu Burns and Market Dynamics
1. Why does SHIB’s burn rate matter?
Burns reduce supply, but price gains require sustained demand—currently lacking due to low trader interest.
2. How does Shibarium contribute to burns?
A fraction of its transaction fees are auto-burned, though recent usage dipped.
3. Are whales accumulating SHIB?
No—large transactions declined, suggesting reduced institutional interest.
4. Could SHIB rebound in 2025?
Dependent on market sentiment and adoption; current trends favor bears.
👉 Explore memecoin trading strategies
Disclaimer: 82% of retail CFD accounts lose money. This content is for informational purposes only.
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