Shiba Inu holders got some disappointing news this week. The burn rate for SHIB tokens just took a nosedive, falling almost 58% in a single day. That means only about 69,420 tokens got permanently removed from circulation, which is way less than what the community is used to seeing.
For those who don’t follow the SHIB ecosystem closely, burning tokens is basically how they try to make the coin more valuable over time. They send tokens to wallets that nobody can access, which permanently removes them from the supply. The idea is that with fewer tokens floating around, each one should theoretically be worth more.
The problem is that this slowdown in burns is happening at exactly the wrong time. The broader crypto market has been bouncing back, with most major coins posting decent gains. But Shiba Inu has only managed a measly 1.48% increase, which has people wondering if something’s wrong.
When you look at the weekly numbers, things get even more concerning. Over the past seven days, only about 2.7 million SHIB tokens were burned, which represents an 87% drop from the previous week. That’s a massive decline in what’s supposed to be one of the key mechanisms driving SHIB’s value.
The whole situation has investors questioning whether this latest price bump can actually hold up without the burn activity supporting it.
Conclusion
Shiba Inu’s sharp decline in burn activity raises concerns about its long-term value strategy. With burns down nearly 87% weekly, investors doubt whether SHIB’s modest price gains can be sustained without stronger token reduction support.
Also Read: Crypto Market Drops
