Shiba Inu burn rate drops 100% as no SHIB removed from supply in 24 hours

Sudden halt in SHIB burning

Shibburn, a tracking tool for Shiba Inu’s deflationary mechanics, reported that no SHIB tokens were sent to burn addresses during the latest measured period. In comparison, the previous day saw 91,120,170 SHIB burned, when the burn rate spiked dramatically by 182,140%.

The absence of burns for the day does not point to a technical issue within the Shiba Inu ecosystem. Instead, it reflects the fluctuating nature of burn activity, which depends heavily on the level of community engagement and token transaction volumes.

In the last 24 hours, the Shiba Inu burn rate plunged to zero, marking a 100% decrease and a sharp contrast with the surge to 182,140% a day earlier.

In the previous week, the project’s community burned a total of 401.3 million SHIB, while 707.51 million tokens have been removed in the past 30 days. Overall, the market has seen 410,844,855,570,460 SHIB tokens burned since inception, amounting to a reduction of 41.08% from the token’s initial one quadrillion supply.

Market performance and price pressure

Following the dramatic shift in burn activity, SHIB’s price also came under pressure. Over the past 24 hours, Shiba Inu fell 0.89% to $0.00000536. The downturn in SHIB’s value coincided with a broader market slide, which occurred after the US Federal Reserve’s minutes showed that most officials anticipated another rate hike by year-end.

Liquidations across the crypto market totaled $969 million within the same time frame, according to analytics firm CoinGlass.

Recent price movement

Shiba Inu faced a second consecutive day of sharp losses on Thursday, hitting a low of $0.000005099. The meme coin’s price has declined for four days since reaching a recent peak of $0.000006 on October 5. During the drop, SHIB traded below both its 50-day and, briefly, its 200-day moving averages, though it later recovered above the longer-term average.

The market sell-off has affected many alternative cryptocurrencies, which had seen strong performances heading into late September.

Leverage and market risks

Glassnode, a blockchain analytics company, reported that leverage in large-cap altcoins remains elevated. A growing number of major tokens now have open interest that is relatively high compared to their market capitalizations by historical standards.

According to Glassnode, this situation, where prices fall as positions remain open, could create conditions for a forced unwinding of leverage if market volatility worsens.

Mini dictionary: Glassnode is an on-chain data and analytics platform that provides insights on blockchain activity, investor behavior, and market trends in the cryptocurrency sector. It tracks key metrics such as open interest, trading volumes, and token flows for major digital assets.