The Shiba Inu Is Burning Millions of Tokens, but It's Not Enough to Stop the Price Collapse

The cryptosphere is going through a period of uncertainty marked by lasting volatility in the markets. Among the most closely followed assets, Shiba Inu (SHIB) stands out particularly.

The crypto market is experiencing a period of uncertainty, with sustained volatility in the markets. Among the assets closely followed by investors, Shiba Inu (SHIB) is at the center of a strong mobilization by its community, which recently burned more than 66 million tokens to reduce the circulating supply. However, despite these efforts, the price of SHIB has dropped, highlighting the limits of token destruction mechanisms against market forces, raising questions about the effectiveness of these strategies in a complex economic context.

Millions of SHIB burned, but a limited impact

Over the past week, the Shiba Inu community has stepped up its efforts to reduce the circulating supply of its asset. According to data published by the Shibburn tracker, 66,156,811 SHB have been permanently removed from the market by being sent to inaccessible wallets. This initiative aims to limit the abundance of the asset, a strategy that could theoretically support its value and reduce selling pressure.

However, the results obtained are mixed. Compared to the previous week, the rate of token destruction has decreased by 24.11 %, which could indicate a decrease in participation or a lesser effectiveness of these initiatives. This slowdown is even more visible in the last 24 hours, during which only 2.85 million SHIB were destroyed, representing a drastic decrease of 53 %. Furthermore, these efforts do not manage to curb the market volatility or sustainably stabilize the price of Shiba Inu, despite a remarkable mobilization by the crypto community.

A price collapse and its implications

Despite significant burning initiatives, the price of SHIB has experienced a notable decline of 9.36 % in a single day, dropping from $0.00002489 to $0.00002235. This drop was partially mitigated by a slight rebound of 2.11 %, but these fluctuations reflect a marked instability in an already weakened market. Such a decline comes after a temporary increase of 9.19% recorded on Thursday, driven by a fleeting bullish momentum from Bitcoin, but this renewed optimism was not enough to sustain SHIB’s upward trajectory.

Beyond these fluctuations, several observers have highlighted a growing correlation between the performances of SHIB and Bitcoin, a dependency that illustrates a broader issue: the structural vulnerability of altcoins to the movements of the dominant cryptocurrency. Moreover, these variations question the effectiveness of token burns as a lever to stabilize or increase the value of cryptos. In a saturated crypto market, where supply and demand mechanisms seem to be dictated by external forces, these community initiatives struggle to create a lasting impact on the price.

Crucial period for Shiba Inu

The Shiba Inu is going through a critical period, where massive token burns show their limits in facing the growing expectations of crypto investors. These supply reductions, although significant, have not been sufficient to restore the value of SHIB, raising questions about their effectiveness. To regain trust, implementing more diversified strategies, such as improving use cases or adjusting the economic fundamentals of the project, may prove essential. This situation also highlights the challenges faced by community cryptocurrencies, confronted with persistent volatility and increased competition in the altcoin universe. The coming weeks will be decisive in determining whether Shiba Inu can adapt or continue to get stuck in a downward trend.

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Holder of a Sciences Po Toulouse degree and a blockchain consultant certification from Alyra, I joined Cointribune in 2019. vinced of blockchain's potential to transform many sectors of the economy, I decided to spread awareness and inform the general public about this rapidly evolving ecosystem. My goal is to help everyone better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of the latest news, decipher market trends, relay the latest technological innovations, and put the economic and societal stakes of this unfolding revolution into perspective.