According to U.Today, Shiba Inu (SHIB) has seen a significant surge in its token burn rate, which has risen by 8,596.57% in the last 24 hours. This increase comes at a time when the SHIB price has been struggling to gain momentum. During this period, over 17.7 million Shiba Inu tokens have been burned. Furthermore, nearly 410 trillion coins have been removed from the initial supply. The current circulating supply of SHIB stands at 583 million tokens.
The Shiba Inu team is aiming to positively influence the price and market capitalization by sending these coins to dead wallets, thereby reducing the circulating supply. This strategy also contributes to making the SHIB ecosystem more efficient and sustainable. Additionally, burning more SHIB tokens increases the scarcity of the coin, creating an imbalance in supply and demand. This makes the token deflationary in nature, which could potentially increase the coin's price over the long term. However, this is not a guaranteed outcome, as other factors also influence the price.
Despite the significant increase in the token burn rate, the price of SHIB has not yet been affected. Currently, the meme coin is trading at $0.00001685, down 1.76% in the last 24 hours. Over the past 30 days, the Shiba Inu price has dropped by 32.80%, causing concern among the community. This bearish trend for SHIB reflects the broader market sentiment, which has been low due to certain macroeconomic concerns. The SHIB price will require more than an increased token burn rate to recover from its current levels. Furthermore, the impacts of token burning events are typically seen in the long term, so any major price movement from the coin may not be witnessed in the short term.