Shiba Inu Burn Rate Spikes, But Price Lags: What's Going On?

Shiba Inu's burn rate has surged in recent days. But despite the spike in burn activity, the meme coin's price remains mired in a slump. The disconnect between burn rate and price has left the community searching for answers.

Data shows nearly 25 million SHIB were burned in the last 24 hours alone. Despite a record 106,040% spike in the 24-hour burn rate, SHIB continues to struggle below a dominant descending trendline resistance.

So, why isn't the increased burn rate translating to a price increase for Shiba Inu? Several factors could be at play. One significant element appears to be whale activity. Shiba Inu has displayed SHIB whales caused the token’s price to fall sharply as network transaction volumes surged 651% in the past 24 hours. The past 24 hours recorded transactions worth a significant amount, suggesting coordinated selling pressure from large holders.

While burning tokens reduces the overall supply, theoretically increasing scarcity and value, it's not the only driver of price. Market sentiment, overall crypto trends, and specifically, the actions of large Shiba Inu holders can significantly impact the price. The combination of increased burn rate and whale selling creates conflicting forces, explaining why SHIB's price isn't reacting as expected.

Stay updated on the latest Shiba Inu news and price analysis as we continue to monitor the impact of burn rate and whale activity on this popular meme coin.