Shiba Inu's (SHIB) token burn rate surged 3,620% over 24 hours, though the absolute number of destroyed tokens remains negligible relative to the memecoin's massive circulating supply.
The percentage increase reflects exceptionally low baseline burn activity rather than meaningful deflationary pressure.
Data from Shibburn shows 715,893 SHIB tokens were eliminated from circulation in the past day.
The figure represents a 3,620.28% jump from the previous period's 19,243 tokens.
What Happened
The seven-day burn total stands at 2,219,196 tokens, marking a 97.06% decline from recent weekly averages.
Historical periods saw millions of SHIB tokens removed daily.
Current burn volumes have made marginal impact on the overall token supply of 589.25 trillion SHIB.
The memecoin declined 1.31% over 24 hours as of Tuesday morning, trading around $0.0000078.
SHIB experienced consistent selling pressure since reaching $0.000009 on December 9.
Seven of the past eight trading sessions closed lower following that peak.
The broader cryptocurrency market weakness coincided with investor digestion of Federal Reserve rate cuts delivered last week.
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Why It Matters
The disconnect between burn rate percentages and actual token destruction highlights the challenge SHIB faces in creating scarcity.
With hundreds of trillions of tokens in circulation, current burn mechanisms provide limited deflationary effect.
Technical analysts identify $0.000009 as critical resistance.
A breakthrough above that threshold could propel] SHIB toward $0.00001 and potentially $0.000011.
Such gains would eliminate one zero from the token's price structure.
Downside support exists around the $0.000007 range.
A break below current levels could trigger additional selling toward that lower boundary.
The modest burn activity suggests SHIB's price movement remains driven primarily by broader market sentiment and speculative trading rather than supply reduction mechanics.
Community-driven token burns have historically generated enthusiasm among SHIB holders.
However, the scale required to materially impact supply measured in hundreds of trillions demands sustained, significantly larger burn volumes.
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