According to U.Today, Shiba Inu (SHIB), a dog-themed meme coin, has significantly increased its burn rate, reaching an astronomical 4,411.52% in the past 24 hours. This internal deflationary mechanism has resulted in millions of tokens being burned. Specifically, 1,110,602 tokens were sent to dead wallets, as reported by Shibburn on X. Over the last seven days, the total number of tokens incinerated stands at 114,618,006, marking a 418.9% increase in the number of tokens removed from circulation.
The burn rate is a crucial supply control mechanism for Shiba Inu, aimed at stabilizing prices and potentially triggering a price rebound. As of the latest data, Shiba Inu has seen a 0.24% rise in price, now trading at $0.00001411, according to CoinMarketCap. Despite this slight increase, the price remains lower than the $0.00001427 it traded for on Friday. Investors are somewhat relieved that the price plunge has been halted, although challenges remain for achieving consistent price stability.
The primary objective of the burn mechanism is to reduce the total number of tokens in circulation, with the hope of increasing the meme coin's value. While the recent 4,411% burn rate has shown some positive results, the SHIB community may need to explore additional strategies for more consistent price stability. Market analysts note that since its crash in June, Shiba Inu has only regained a few points before slipping downward again. Several on-chain indicators reveal a bearish trend, which market observers attribute to the coin's inability to achieve stability or approach the $0.000015 level.