The Burn Rate of SHIB Rises 4,000% Thanks to Whale Transactions

The Shiba Inu community (SHIB) has significantly ramped up its token burning efforts, permanently removing over 1.3 billion SHIB from circulation in just seven days. This increasing deflationary pressure, including a 4,000% spike in the daily burn rate, is occurring even as the market price of the token continues to fall. This divergence highlights the typical scenario of the cryptocurrency market, where the dedicated community focuses on long-term fundamentals despite facing short-term bearish sentiment. Community burn skyrocketed over 4,000% According to data shared by community tracking tools, 1.338 billion SHIB tokens were burned in the week ending July 3, an increase of 2.1% compared to the previous week. The burning is supported by the Shibarium layer-2 network, where a portion of the gas fees paid in BONE tokens is automatically converted to SHIB and sent to a "dead" wallet, permanently removing it from the supply. The daily burn rate has surged. Data from the Shibburn tracking platform reports a spike of over 4,000% in just 24 hours, with 13.45 million SHIB destroyed. A significant portion of this comes from a single transaction by an anonymous whale, who burned over 13.15 million SHIB, demonstrating the strong effort driven by the community to reduce the massive supply of this token. Prices fall despite efforts to reduce inflation. Despite the strong token burning, the market value of SHIB has not yet reacted positively in the short term. In the past 24 hours, the token price has fallen by 1.84%, with SHIB trading at nearly $0.00001158. Its market capitalization has also decreased to $6.82 billion.

Adding to the bleak picture, trading volume decreased by 38% over the past day to around $120.27 million. The low volume indicates a general lack of trading interest at the current level, suggesting that the market has not yet priced in the long-term impact of the supply reduction. Even with price fluctuations, the project still maintains a large and loyal investor base. Data shows that 1.51 million investors continue to hold tokens, indicating a strong community belief in the long-term viability of the Shiba Inu ecosystem and its deflationary mechanism.