Shiba Inu (SHIB) has experienced an extraordinary increase in its token burn rate, surging by 12,833% within a short period. According to data from the popular Shibburn tracker, over 13 million SHIB tokens were burned recently, with two major transactions alone removing around 12.5 million tokens from circulation. This burn rate spike represents a significant improvement in deflationary activity for the meme token.
Despite this intense token destruction, SHIB's price did not rally as might be expected. Instead, the price experienced volatility and has slightly fallen by approximately 3.77% over recent days, trading near $0.00001124 at the time of reporting. Market capitalization correspondingly declined by about 2.93%, reflecting lukewarm investor response to the burn event.
The Shiba Inu project team, led by figures such as Shytoshi Kusama and marketing lead Lucie, issued warnings to the community to beware of fake SHIB tokens circulating in the market. Lucie emphasized that the only genuine SHIB is the one on the Ethereum blockchain and urged users to block scammers promoting counterfeit tokens.
Community engagement showed positive signs, including a 27% increase in daily active addresses, indicating heightened participation. However, no official statements confirmed the futures impact of the burn spike, and investors remain cautiously optimistic. Historical data suggests that while burn rate surges can provide deflationary pressure, they do not guarantee immediate price rallies due to broader market conditions and volatility.
Overall, the intense SHIB burn reflects strong community activity and an attempt to reduce circulating supply, aiming for potential long-term positive effects. Still, the immediate price dynamics remain subdued, affected by complex market factors and the need for further project developments.