The team behind the popular dog-themed cryptocurrency, Shiba Inu, has slowed down on its decisive efforts to consistently remove large amounts of SHIB tokens from circulation.
Data from the on-chain tracking platform, Shibburn, shows that only 320,814 SHIB tokens have been destroyed today.
SHIB Burn Rate Up by only 32%
While SHIB investors have remained optimistic about the token’s short-term potential, the significantly low burns witnessed over the last day have triggered concerns in the market.
With SHIB’s daily burn rate up by only 32%, the token has seen only 320,814 SHIB tokens sent to dead or unspendable wallets. This marks a significant decline in SHIB’s community-led burn activity, as the token is renowned for consistently burning millions of tokens daily, sometimes billions.
The token has barely seen this low token burn in recent days.
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Although the reason behind SHIB’s low burn activity remains uncertain, there are speculations that SHIB investors might have relented in their demand for the token, leaving the team with no reason to boost scarcity.
Moreover, the low burn rate could also be traced to several other factors like broader market skepticism and the surging desire among holders to prepare for a possible price surge by HODLing rather than burning.
SHIB Volume Down as Price Stabilizes
Nonetheless, the price of SHIB has responded to the poor burn activity with stable price movements despite the broad market rally experienced today.
According to the latest data from CoinMarketCap, SHIB has shown resilience in its price movement today, recording a decent 0.25% surge in price over the last day. As such, the token is trading at $0.001264 as of press time.
While the slow SHIB burn activity suggests poor market performance, the token has seen its overall trading volume remain in the red zone, with a 4.02% decline over the last 24 hours.
This suggests that SHIB’s small and large traders have been relatively dormant over the last day, suggesting a decrease in the demand for SHIB token as market skepticism heightens following recurring price slumps.
There are also chances of a bullish outlook for SHIB as the broader crypto market returned to the green zone since the past two days. Hence, expectations of a bullish surge in altcoins have triggered a breakout watch for SHIB among optimistic investors.
