Dog-themed cryptocurrency Shiba Inu (SHIB) has witnessed a dramatic 5,762% increase in its token burn rate within a 24-hour period, permanently removing over 26 million SHIB tokens from circulation. This surge in token burns, tracked by Shibburn, significantly lowered the total supply of SHIB, coinciding with millions of tokens being sent to dead wallets, rendering them unspendable.
Despite the spike in daily burn rate, the weekly burn rate dropped by 19.5%, with about 119.6 million SHIB burned over the past seven days, attributed to a recent market sell-off and subdued trading volume.
Simultaneously, there was a notable whale activity involving a $31 million transfer of SHIB tokens to Coinbase, signaling potential increased sell-side pressure. Whale movements of this scale are often associated with liquidity shifts and can influence SHIB price volatility.
The Shiba Inu decentralized autonomous organization (ShibDAO) is progressing towards more decentralized governance, which may moderate the impact of whale-driven market dynamics over time. Analysts observe that the combination of burn rate fluctuations and large-scale whale movements could create volatility but also present growth opportunities for the SHIB ecosystem.
Overall, during this period, SHIB’s price has experienced minor fluctuations, with decreases in recent sessions amid mixed market conditions and reduced on-chain transaction volumes. Whale activity and burn rate changes are shaping community sentiment and market confidence as they digest macroeconomic factors and broader crypto market sell-offs.