- Shiba Inu burn rate jumps over 580 percent as more than 16 million tokens leave the supply.
- Two wallets drive SHIB burn by eliminating millions of tokens and trimming total circulation.
- Despite price growth SHIB trading volume drops raising concerns about market strength.
Shiba Inu has accelerated its token burn, removing over 16 million SHIB tokens from circulation in just 24 hours. Data from Shibburn confirmed a sharp 580.28% increase in the burn rate during this period.
The accelerated speed demonstrates enhanced efforts to decrease circulating supply while potentially enhancing investor trust. Recent statistics show that 16,607,692 tokens have been burned while the circulating supply decreased by 590.19%.
Market Recovery Fuels Burn Activity
The spike in SHIB burns follows a broader recovery in the cryptocurrency market. The global crypto market cap rose by 4.27%, offering a more favorable environment. The price of Shiba Inu rose by 5.89% as positive market momentum emerged. Most traders maintain a cautious approach because the market shifts swiftly.
The strategic burn process requires moving SHIB tokens into dead wallets which results in permanent token removal from circulation. This method aims to reduce the total supply, which stands at approximately 584 trillion tokens.
Key Wallets Drive Token Elimination
Two wallet addresses played a significant role in the latest burn activity. These wallets, identified in Shibburn’s data, collectively destroyed millions of SHIB tokens.
The address ending in “0xa9d1e08c7” removed 10 million tokens, while the wallet ending in “0xa20833” burned 4.3 million tokens. These substantial burns contributed heavily to the day’s overall figure.
Investors view this activity as a potential catalyst for future price movements, given the basic supply-demand principle. However, reduced trading volumes raise concerns about the sustainability of this trend.
Mixed Signals from Market Data
While SHIB’s price and burn rate have climbed, its trading volume tells a different story. Reports show a 21.54% decline in 24-hour trading volume, bringing it down to about $175.53 million.
This drop suggests that internal community efforts may be driving the recent rally, rather than broader market forces. Furthermore, SHIB’s weekly burn volume has decreased to 79.1 million tokens, marking a 57.86% decline from the prior week.
The sudden burn spike on April 11 raised speculation about strategic timing. Market watchers believe the SHIB team may be using burns to maintain attention and encourage renewed interest in the token.
As Shiba Inu’s burn rate continues to rise, market participants will monitor closely to see if this trend can sustain investor interest.
