Shiba Inu Burn Rate Rises 21%, But the Challenge of Reducing the Token's Supply Remains

Shiba Inu has witnessed a lackluster burn activity in the past two weeks, stemming from a similar lackluster price action, activity, and interest in the cryptocurrency.

Shiba Inu Burn Rate Surges 21% as SHIB Price Recovers

Shiba Inu (SHIB) has seen a slight increase in its burn activity, with a 21.76% rise in the number of SHIB tokens burned in the past 24 hours. This increase comes after two weeks of lackluster burns, largely due to a similar lack of price activity and interest in the meme coin.

Shiba Inu Burn Activity Slow Despite 21% Increase

Shiba Inu has seen a lack of activity in the past two weeks, with daily SHIB burns徘徊在2100万枚SHIB代币左右，远低于多头势头所需的典型每日燃烧量。

Shiba Inu Burn Tracker Shibburn.com highlighted that the last 24 hours featured 26,221,803 $SHIB tokens being sent collectively to the SHIB burn wallets. This marks a 21.76% increase from the 21 million SHIB tokens burned in the previous 24-hour period.

However, despite the 21.76% increase in burn activity, the total number of tokens burned remains low. This amount, while an improvement over previous days in the past few weeks, is still small considering Shiba Inu’s circulating supply, which currently stands at over 589 trillion tokens. Even at this improved burn rate, it would take decades to significantly reduce the token’s supply.

SHIB burns are one of the several measures that the Shiba Inu community has undertaken to contribute to sustained price appreciation. The logic follows that the more SHIB tokens are burned and removed from circulation, the better it is for Shiba Inu’s price. Notably, lead Shiba Inu developer Shytoshi Kusama once mentioned that it would be possible to burn 99% of the SHIB supply.

The current burn rate highlights the need for a more consistent approach to token burns if the goal of reducing supply and driving long-term price appreciation is to be achieved. However, the recent 21.76% increase could be the first step of many burn increases to come.

SHIB Price Sees 3% Gain As Market Recovers

Shiba Inu’s price has seen a slight recovery, largely due to the broader crypto market’s recovery from last week’s sell-off. Shiba Inu has managed to capitalize on the 3.48% market-wide increase and is currently trading at $0.00002222, a 3% increase in the past 24 hours.

A technical analysis of Shiba Inu’s price action on its 24-hour chart shows that SHIB fiyatı üst trend çizgisinin kırılmasına hazırlanıyor of a falling wedge pattern. A confirmed breakout of the falling wedge, coupled with sustained market inflows, could see the Shiba Inu price pumping in the next few weeks.