Why is the burning rate of SHIBA INU skyrocketing while its price isn't?

We recently witnessed a massive increase in SHIB burns - over 100,000% in just 24 hours! It seems impressive, but the price hasn't risen significantly. How is this possible?

Here’s a quick explanation:

1. Burning reduces supply but doesn't guarantee an increase in demand

Burning SHIB tokens means there are fewer SHIB tokens available in the market. However, for the price to rise, demand must increase or at least remain stable. If buyers don’t step in, the price may not react immediately.

2. Market speculation can offset the effects of burning

Some investors might sell expecting quick profits from the burning news, which can create temporary downward pressure on the price.

3. Multiple factors affect the price simultaneously

General cryptocurrency market sentiment, macroeconomic events, and large sell-offs can keep the price low even with reduced supply.

4. The effects of burning take time to reflect on the price.

While reduced supply supports price growth in the medium to long term, it is not always immediate. The effects of burning may take days or weeks to manifest.

In summary: The massive burning of SHIB is a positive signal for token economics and reduces supply. However, for the price to rise, sustainable demand and favorable market conditions are necessary, so patience and close monitoring are key.