SHIB Burn Rate Increases But Price Drops 11% After Initial Surge

Recent data from Shibburn, a platform tracking Shiba Inu token burns, indicates a significant spike in burn rate over the past 48 hours.

Recent data from Shibburn, a platform that tracks Shiba Inu (SHIB) token burns, reveals a significant increase in the burn rate over the past 48 hours. However, despite these efforts, the token's market performance has been volatile, with a sharp decline following an initial price surge.

On-chain data indicates that the community burned 4,618,788 SHIB tokens over the past day, marking a 567.83% increase in the burn rate. Notably, two large transactions moved 1,913,509 SHIB and 1,425,595 SHIB into non-spendable addresses, effectively reducing the available supply.

Over the past week, the token burns have been even more substantial, reaching 1,163,645,543 tokens, which translates to a 3,829.29% increase compared to the previous week. Despite these efforts, SHIB remains one of the most widely circulated meme coins, with a current total supply of 584.27 trillion SHIB tokens.

Of this total, 410.74 trillion tokens have been permanently removed from circulation, with a significant portion burned in 2021 by Ethereum co-founder Vitalik Buterin, who received half of the token's initial supply from the asset’s anonymous creator, Ryoshi. Additionally, 4.97 trillion SHIB tokens are currently staked across various DeFi platforms.

Meanwhile, the SHIB price experienced significant volatility, with an initial surge followed by a rapid decline. After an impressive 31% increase on Monday, the token reversed course, declining by 11% within 24 hours.

The asset initially dropped from $0.00001690, wiping out some of the gains made earlier in the week, but has since stabilized at $0.00001618. The sudden price drop came after the asset followed Bitcoin’s upward momentum.

Being the asset that sets the pace for the broader market, Bitcoin saw a 10% increase on Monday, recovering from a 12% decline between Friday and Monday.

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The U.S. government's decision to impose tariffs on Canada, Mexico, and China impacted the cryptocurrency market, leading to a downturn. However, after the U.S. government delayed the 25% tariffs on Mexican imports, Bitcoin quickly recovered, surpassing $101,000.

This development helped ease market uncertainty, allowing Bitcoin to recover from its earlier losses. Bitcoin briefly crossed the $102,000 level again but later dropped to around $98,179, falling below the $100,000 mark once more.

These price fluctuations ultimately influenced the SHIB price, highlighting the broader market correlation between major cryptocurrencies and meme coins.

While SHIB’s burn rate has dramatically increased, the price has not responded positively. The market remains unpredictable, with the asset following broader cryptocurrency trends.

At the time of writing, Shiba Inu (SHIB) is trading at $0.00001613, with an 11.11% price dip over the last seven days.