Shiba Inu (SHIB) has set an unusual record, stunning some members of the community. In the last 24 hours, not a single SHIB token has been incinerated in the ecosystem, as the burn rate has plummeted by a massive 100%.
Shiba Inu burn rate decline triggers market concerns
Per data from Shibburn, an online platform that tracks burn activities, not a single token was sent to dead wallets within this time frame. This has sparked concerns amid the continued price volatility facing the dog-themed meme coin.
For clarity, Shiba Inu uses burn activity as a deflationary mechanism to control the circulating supply. The idea is to limit supply and drive up demand to increase the value of SHIB on the crypto market.
A zero burn signal price has been allowed to take a free fall. This comes just days after Lucie, the marketing lead, issued a call for burn activities on Shibarium.
With the price of Shiba Inu still fluctuating below the $0.0000130 resistance level over the past seven days, the decision not to incinerate the supply is baffling.
The meme coin has slipped more than 8% from its June opening price and appears set to continue on a downward slope. Shiba Inu recently threatened the $0.000011 support level, which could trigger bearish concerns if breached.
Whale sell-offs and market volatility weigh on SHIB
Shiba Inu is changing hands at $0.00001190 as of press time, representing a 2.65% decline in the last 24 hours. However, trading volume has climbed by 43.92% to $154 million, signaling significant activity.
The current Shiba Inu market setup suggests technical vulnerabilities and market dynamics affecting price movement. The zero burn activity further complicates SHIB’s recovery to higher levels.
As U.Today reported, large holders’ activity has declined, with data suggesting Shiba Inu whales are selling their holdings. Such a development could keep SHIB in the red longer.
To spark a price reversal, the ecosystem needs to activate burn activity, while SHIB bulls must step up to support price action.
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