Shiba Inu Burn Rate Surge Above 11,000%, But SHIB Price Tells a Different Story

Shiba Inu has made headlines today with its burning mechanism after a staggering amount of SHIB tokens were removed from circulation consequently raising the burn rate by over 11,000%. The significant burn rate surge has sparked interest across the Shiba Inu community eagerly hoping for a potential price uptick.

However, amid the huge number of tokens destroyed, the price of the coin has taken a different route, dropping by over 4% in the last 24 hours. Let us take a look at it in detail.

Over 21 Million SHIB Tokens Removed From Circulation

According to fresh data from Shibburn, a dedicated Shiba Inu burn tracker, the Shiba Inu community has succeeded in destroying exactly 21,556,546 SHIB in the last 24 hours. As a result, the burn rate has surged exponentially by 11,052%. The rise in the burn rate was triggered by a significant transfer from a wallet labeled ‘0x498…d761’ carrying 21.3 million SHIB to a burn address. Overall, there have been three burn transfers recorded today, with the other two destroying 120,888 (120.8 thousand), and 12,000 respectively.

For context, the Shiba Inu community applies the burn mechanism to drastically reduce the amount of SHIB tokens in circulation. Going by the law of demand and supply, the reduction in the amount of SHIB supply is likely to cause scarcity which in turn can potentially raise demand and trigger a price surge to impressive heights in the future.

Moreover, at the time of writing, a total of 410.7 trillion SHIB has been removed from circulation through this medium, leaving more than 583 trillion tokens still in supply. While there is still a long way to go as regards significant supply reduction, the Shiba Inu community, popularly known as the SHIB army is resilient.

SHIB Price Amid Burn Surge

The price of SHIB has taken a nosedive in the last 24 hours. According to data provided by CoinMarketCap, SHIB has declined by 5.03% to trade at $0.00002382. However, its trading volume over this period has jumped by 33% to $639.8 million.

Over the last day, SHIB has traded between the lows and highs of $0.00002369 and $0.00002536 which represents a 72.4% drop from its all-time high of $0.00008616 reached in October 2021 during the bull market. In hindsight, SHIB has dropped by over 8% in the last seven days and by 6.5% in the last month.