SHIB burn rate and price note a resurgence, but volume remains in the red. What does this mean for the SHIB ecosystem?

After several days of declining burn activity, it appears that Shiba Inu has resumed its regular large-scale token burns.

Shiba Inu's (CRYPTO: SHIB) burn rate and price have shown a resurgence in recent times, even as trading volume remains in the red. So far this year, SHIB has lost nearly 52% of its value.

What Happened: According to blockchain tracking firm Shibburn, SHIB's burn rate has seen a massive increase of 580.28% over the last 24 hours.

As of press time on Wednesday, 16,607,692 SHIB tokens have been sent to the dead wallet in the last 24 hours, bringing the total to 176,869,845 SHIB burned in the last seven days.

The new SHIB burn contributes to a slight decrease in the circulating supply, which is now at approximately 584 trillion.

Shibburn's data also highlights a substantial decline in SHIB's burn activity over the week. The uptick for April 11 follows a slow week in which only 79.1 million SHIB were burned, showing a 57.86% drop compared to the previous seven-day period.

Why It's Important: Earlier this year, several initiatives were launched to boost SHIB burning. A portion of the revenue generated by Shiba Inu's (SHIB) metaverse will reportedly go towards burning the SHIB token.

Shiba Inu is widely known for its large-scale token burns, which are performed in an attempt to reduce the circulating supply of the token and drive up scarcity.

The crypto community is actively involved in speculating on the identity of the ‘burner’ and the source of the SHIB tokens. Some theories suggest that it could be a large investor or a group of investors who are passionate about the Shiba Inu ecosystem.

The rate at which SHIB is burned is crucial for its price action. A higher burn rate could lead to increased demand for the token as the circulating supply decreases.

However, despite the surge in SHIB's burn rate and its subsequent 5.89% price uptick to $0.00001232 by press time, the token's trading volume has seen a downturn.

According to data from CoinMarketCap, SHIB's trading volume has slumped significantly by 21.54% to approximately $175.53 million as of April 12.

This suggests that the rebound in SHIB's burn metric and price may be driven more by internal community efforts or internal projects than by actual trading momentum, leaving questions about the sustainability of its bullish trend.