- Shiba Inu’s burn rate plunged amid price struggles.
- Whale transactions continued to influence SHIB’s price, adding both volatility and liquidity concerns.
Shiba Inu [SHIB] has seen fluctuations in its burn rate recently, with a dramatic 90.69% drop in burns over the last 24 hours.
While token burns are a deflationary mechanism designed to reduce supply and increase scarcity, the impact on SHIB’s price has been limited so far.
With 2025 approaching, many are questioning whether the burn efforts, combined with whale activity, can generate long-term value or if broader market conditions will continue to overshadow these efforts.
Understanding burn rate and SHIB’s recent price movement
For context, burn rate refers to the pace at which tokens are permanently removed from circulation, which reduces the overall supply. In theory, this mechanism drives up demand. However, recent data has triggered concerns.
Over the past 24 hours, 506,465 SHIB tokens were burned, reflecting a sharp 90.69% decline from previous levels.
This significant drop suggested a sudden slowdown in burn activity, especially with the whopping 578% increase a mere 10 hours earlier.
Despite this, weekly burns presented a different story, showing a modest 4.5% increase with 65.19 million SHIB tokens burned over the past week.
This indicated that the community’s efforts to reduce the supply remain active, even though the short-term burn rate has decreased.
Price action and market sentiment
Meanwhile, on the price front, SHIB has struggled to maintain its November highs. At press time, the memecoin exchanged hands at $0.00002167.
Despite a minor uptick of 1.69% over the past day, broader market sentiment remained subdued. The token’s declining RSI signaled bearish momentum.
Furthermore, the OBV showed stagnant demand, while reduced trading volumes pointed to waning retail participation.
Source: TradingView
Shiba
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Author: Samantha LKM
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