Why is the SHIBA INU burn rate skyrocketing, but the price isn't rising?

Recently, we saw an explosive increase in the burning of SHIB tokens — over 100,000% in just 24 hours! It seems impressive, but the price hasn't significantly increased. How is this possible?

Here is a quick summary:

1. Burning reduces supply, but does not guarantee higher demand

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

2. Market speculation can neutralize the effects of burning

Some investors may sell in anticipation of quick profits from the news of the burn, putting temporary downward pressure on the price.

3. Multiple factors influence price simultaneously

The overall sentiment of the cryptocurrency market, 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

The reduction in supply supports price growth in the medium and long term, but it is not always instantaneous. It may take days or weeks for the impact of burning to appear.

In summary: The massive burning of SHIB is a positive sign for the tokenomics and tightens the supply. However, for the price to rise, sustained demand and favorable market conditions are necessary. Therefore, patience and close monitoring are key.

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