The Shiba Inu (SHIB) ecosystem saw a massive burn rate increase in the past 24 hours, with 5.6 billion SHIB taken out of circulation. While burn rate spikes happen, recent weeks saw only minor amounts sent to dead wallets, making this multi-billion burn rare.
Major Burn Rate Increase
Shibburn data shows a 373,961% burn rate surge, with 5,638,786,146 SHIB permanently removed. A single wallet contributed 5,604,733,610 SHIB, one of the largest burns in recent memory.
This significant burn event ties back to a meme coin project linked to a “cat” theme, which initiated a burn totaling approximately $100,000 worth of SHIB. The project announced its intention to build a positive relationship with the Shiba Inu ecosystem by reducing the token supply.
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While this partnership effort brought increased attention to SHIB, some SHIB supporters have expressed concern. An account on X (formerly Twitter), Susbarium, highlighted that many projects look to associate with the SHIB ecosystem, seeking benefits from SHIB’s large and loyal community.
Caution in the Community
Susbarium cautioned that projects often try to attract the “SHIB army” with presales or low-value tokens to capitalize on SHIB’s popularity. This warning shows SHIB users’ growing awareness of projects leveraging SHIB’s popularity without adding long-term value.
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The latest burn event has drawn attention to the SHIB ecosystem, although the token’s price hasn’t responded positively. As of the last update, SHIB traded at $0.00001734, marking a 6% drop in 24 hours, as reported by CoinMarketCap. Following a week of gains that saw SHIB hit a multi-month high above $0.000019, the token appears to be undergoing a correction.
Despite this short-term dip, the overall buzz around SHIB remains high, leaving investors eager to see if these deflationary efforts will ultimately influence the token’s price trajectory in the coming days.
