SHIB Burn Rate Soars 580% Amid Crypto Market Rebound

SHIB burn rate and price note a resurgence, but volume remains in the red. What does this mean for the SHIB ecosystem?

After several days of declining burn activity, it appears that Shiba Inu has resumed its regular large-scale token burns. Data from blockchain tracking firm Shibburn shows a massive 580.28% increase in SHIB’s burn rate over the last day.

This comes amid a broader crypto market rebound, with overall crypto market capitalization surging by 4.27% as of press time. SHIB has also mirrored the uptrend in its burn metric, climbing 5.89% in price over the same period.

16,607,692 SHIB removed from circulation amid weekly decline

According to a tweet posted by the data tracking firm, the SHIB team burned 16,607,692 SHIB over the last 24 hours — a massive 590.19% increase compared to the previous day.

SHIB’s burn strategy involves sending large amounts of tokens to dead wallets in an effort to reduce the circulating supply and drive scarcity.

This three-digit spike in the burn rate has brought the total circulating supply of SHIB tokens to approximately 584 trillion.

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Despite this daily increase, the data reveals a notable decline in SHIB’s weekly burn rate. The uptick for April 11 follows a slow week in which only 79.1 million SHIB were burned, marking a 57.86% drop compared to the previous 7-day period.

While the reason behind the sudden jump in the burn rate remains unclear, speculation suggests the SHIB team may have reignited the strategy to restore investor confidence and fuel bullish momentum.

Despite the surge in SHIB’s burn rate, mirrored by its price jump to $0.00001232 as of press time, the token’s trading volume remains in the red, raising concerns among investors.

Data from CoinMarketCap shows SHIB’s trading volume has slumped significantly by 21.54% to around $175.53 million as of April 11. 

This suggests that the rebound in SHIB’s burn rate and price may be driven more by internal community efforts than by actual trading momentum, leaving questions about the sustainability of its bullish trend.