Is the Shiba Inu burn rate surge affecting SHIB prices? Recently, the Shiba Inu (SHIB) burn rate has experienced significant spikes, grabbing the attention of the crypto community. Shiba Inu, renowned for its daily burn activity, uses this mechanism to control the circulating supply of its tokens. This deflationary measure helps keep prices stable, or so the theory goes.

Shiba Inu Burn Rate Skyrockets, Price Stability Questioned

Reports indicate Shiba Inu SHIBUSD has seen an astronomical burn rate surge, resulting in the wiping out of over 1.1 billion SHIB tokens in some periods. Data from Shibburn reveals these dramatic increases. For example, Shiba Inu (SHIB) burn rate increased by 2025.22% on Tuesday with 20.83 million tokens removed from circulation. In another instance, the Shiba Inu burn rate spiked, reportedly by 240%.

Does Burning SHIB Impact the Price?

But, despite the growing burn rate, the SHIB price doesn’t display stable growth. Despite the massive burn rate, SHIB price dropped on certain days. We can see spikes on the price chart on days of significant burns. However, the price action following these spikes is often inconsistent. While the intention of burning tokens is to increase scarcity and potentially drive up the price, other market factors appear to be playing a more dominant role.

While burns of Shiba Inu impact the total circulating supply of tokens, remember that other factors like market sentiment, overall crypto market trends, and trading volume have an impact on SHIB's performance.