Shiba Inu Burn Rate Hits 0% Amid Price Drop and Year-End Lull

Shiba Inu Burn Rate Drops to Near Zero Amid Market Downturn and Cautious Year-End Trading

  • The Shiba Inu burn rate fell sharply to zero, with only 552 tokens burned in the past 24 hours.
  • Weekly burn activity declined by nearly 97%, showing a significant drop in token destruction.
  • SHIB’s price dropped 4.55% amid broader crypto market downturn influenced by inflation data.
  • Market participation has reduced as traders adopt a cautious approach nearing the year-end.
  • The lead developer highlights mainstream adoption as key to ecosystem sustainability over aggressive burn methods.

In the last 24 hours, the burn rate for Shiba Inu (SHIB) crashed to zero, with just 552 tokens sent to dead wallets, according to data from the Shibburn platform. This decline comes after a 3,620% increase the previous day when over seven million SHIB tokens were burned. The collapse in burn activity coincides with rising price pressure on SHIB, which fell 4.55%, dropping to about $0.00000734.

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Over the past week, SHIB burning dropped by 96.96%, with only around 2.15 million tokens destroyed, compared to previous periods. Such a sharp reduction reflects a broader decrease in token destruction mechanisms and the cautious positioning by traders as the year comes to a close. Despite the launch of SHIB perpetual futures on Coinbase on December 15, the token continued to experience downward price momentum, affected by overall market weakness.

The recent downturn in SHIB’s price is linked to a delayed inflation report released by the Bureau of Labor Statistics, which showed a headline annual inflation rate of 2.7%. This macroeconomic data has contributed to risk-off sentiment across cryptocurrencies, amplifying the year-end market lull for Shiba Inu. Trading volumes have thinned significantly, signaling reduced market participation in meme coins like SHIB.

Earlier in the year, Shiba Inu lead developer Shytoshi Kusama stressed that mainstream adoption is the ultimate solution for the ecosystem’s future. He noted, “it would take a burning of 99 percent of supply to replace the actual utility and the real world practice cases.” The community has advocated aggressive burn strategies to reduce the massive supply—currently estimated at 589 trillion tokens—to support price increases.

The sudden halt in burn rate marks a significant break in SHIB’s deflationary approach. Whether this low burn activity is temporary due to year-end trading patterns or signals a longer-term trend remains uncertain as the cryptocurrency market moves into 2025. For now, SHIB remains near critical support levels, with participants closely watching macroeconomic indicators and market conditions.

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