Shiba Inu (SHIB), a dog-themed meme coin, has employed its internal deflationary regulation mechanism, burn. In the past 24 hours, the burn rate has soared to an astronomical 4,411.52% with millions of tokens burned.
SHIB’s burn rate and price reaction
A total of 1,110,602 tokens were sent to dead wallets, according to Shibburn in its update on X. According to Shibburn’s hourly rate update, the precise total tokens that have been incinerated in the last seven days stands at 114,618,006.
HOURLY SHIB UPDATE$SHIB Price: $0.00001406 (1hr 0.46% ▲ | 24hr -0.56% ▼ )
Market Cap: $8,282,358,653 (-0.57% ▼)TOKENS BURNT
Past 24Hrs: 1,110,602 (4411.52% ▲)
Past 7 Days: 114,618,006 (418.9% ▲)— Shibburn (@shibburn) August 10, 2024
This represents a 418.9% increase in the number of tokens that have been removed from circulation and can no longer be spent.
The burn rate has always been Shiba Inu’s supply control mechanism in an attempt to stabilize prices and possibly force a price rebound. The move has worked as Shiba Inu, at the time of writing, has recorded a 0.24% rise in price and now trades for $0.00001411, according to data from CoinMarketCap.
Although Shiba Inu’s downward trend has been halted by the move, the price of SHIB remains lower than the $0.00001427 it traded for on Friday. However, investors in Shiba Inu are relieved that the price plunge has been arrested.
Challenges ahead for SHIB’s price stability
Usually, the overall objective of the burn mechanism has always been to reduce the total number of tokens in circulation with hopes that it would cause an increase in value of the meme coin. The recent 4,411% burn rate has yielded results, though slightly.
The SHIB community may have to think outside the box for more consistent price stability. Notably, ever since its crash in June, market analysts say the asset only regained a few points before slipping downward again.
Several of SHIB’s on-chain indicators reveal a bearish trend, and market observers have attributed this to be the reason Shiba Inu has not recorded stability nor attempted to reach for the $0.000015 level.
