Shiba Inu (SHIB), the dog-themed meme coin, has launched its deflationary mechanism in the past 24 hours. SHIB recorded a mild burn in a notable move before 2024 left the stage. The project saw over 1.7 million SHIB tokens withdrawn from circulation.
The impact of the burning mechanism on the stability of the SHIB price
Data from Shibburn, an online platform that tracks burn activity on the Shiba Inu network, reveals that the burn rate has increased by 243.34% in the past 24 hours. Specifically, 1,717,872 SHIB tokens were sent to dead wallets.
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Shiba Inu, known for its daily burn activity, uses this mechanism to control the circulating supply of its tokens. These deflationary measures help maintain price stability and slow down the price decline. Hence, the 243.34% increase in the burn rate is significant, as it helps achieve these goals.
Surprisingly, on average, SHIB is still down 2.76% and trading at $0.00002109, according to data from CoinMarketCap. Meanwhile, market volume has surged a whopping 31.11% to $538.36 million as traders take part in the final trading frenzy on the last day of the year.
However, a closer analysis of SHIB price action shows that the meme coin has been in a free fall and has dropped to a low of $0.00002054. The burning mechanism likely helped stabilize it and supported its recovery to current levels.
Could SHIB Discover a New Price in 2025?
Over the past 30 days, SHIB has experienced volatility to regain its price of $0.00003016. Despite the bullish cycle, Shiba Inu’s December performance fell short of investors’ expectations in the broader crypto space.
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Analysts suggest that in order for SHIB to retest higher prices in 2025, the community must participate more and developers must launch new projects to boost participation.
As U.Today reports, Chitoshi Kusama, the mysterious leader of the Shiba Inu, has promised an exciting 2025, with ambitious plans for the ecosystem. According to Kusama, 2025 will be epic.