The burn rate of $SHIB represents the speed at which $SHIB tokens are permanently removed from circulation. This is a fundamental mechanism in the Shiba Inu ecosystem, as it seeks to create a sense of scarcity, which could potentially increase the value of existing tokens. Recently, the burn rate skyrocketed, increasing an incredible 1,581% in just 24 hours, with over 100 million SHIB tokens transferred to dead wallets. This dramatic increase not only underscores the community's dedication to stabilizing the token's value but also acts as a crucial indicator of the ecosystem's deflationary tactics.
Currently, the circulating supply of SHIB is around 584 trillion tokens, with a total supply of approximately 589 trillion. The burn mechanism is intended to gradually decrease this supply, thereby nurturing a healthier market landscape. However, despite these initiatives, the price of SHIB has faced obstacles, hovering around $0.00001457, which corresponds to a drop of 3.28% in the last day. This curious situation of increasing burn rates amidst declining prices raises questions about the effectiveness of the burn strategy in an unstable market.
