The second biggest meme coin, Shiba Inu, has been depending on the SHIB burn mechanism in hopes of increasing its scarcity and providing more stability in the price. Even since the introduction of token burning, Trillion of tokens have been reduced from the total supply, but there is no significant difference in the SHIB price performance. Considering that, it concerns many, as the burn rate has turned to zero today on Shibburn, and how it will impact the Shiba Inu price.
More importantly, due to rising competition, SHIB must perform well on the charts. This is because the newly launched tokens like Goatseus Maximus are attracting all the investors.
Why Is the SHIB Burn Rate at Zero Today?
Around two years ago, the developers introduced the token-burning mechanism and burnt more than 410T tokens since then. However, despite that, the token still has 589.52T in supply, which is quite huge and is restricting its performance. This is why it is shocking to see the SHIB burn rate at zero today, as just yesterday, the burn rate spiked by 6,750%. More importantly, over the week, the team has burned 58,389,212 tokens, which is quite high.
That is why many believe there might be a glitch in the Shibburn tracker, presenting zero on the website. Interestingly, the glitch can happen, as the burning mechanism has been running automatically since the beginning of the year. With that, once a certain amount of transactions are conducted on Shibarium, with the earned fees (BONE), those fees will get converted into SHIB and burned later.
However, Shibburn’s social media posts also mentioned zero in today’s burning reports, eradicating the possibility of a glitch, but the real reason is still unknown. Regardless, this is not happening for the first time, as it has happened multiple times in the past.
What Does It Mean for Shiba Inu Price?
The last week has witnessed quite a fluctuating behavior in the SHIB burn rate, causing significant highs and lows. This fluctuating pattern indicates that though the investors are participating in the burn, the efforts are still lacking. More importantly, the ongoing burning is not significant enough to impact the Shiba Inu price, due to the remaining heavy supply.
Even at the time of writing, the token is trading at $0.00001765, with $10.40B in market capitalization. On the 24-hour charts, the zero SHIB burn rate has not impacted its price at all. It indicates that the burning has no significant effect on the Shiba Inu price. More importantly, it is under consolidation for the entire week, fluctuating between $0.00001716 to $0.00001946. This consolidation is the outcome of the crypto market returning to neutral after the investor’s sentiments dropped from greed. More importantly, the Bitcoin price rally is on a halt, currently valued at $67.2K, despite hitting $69k earlier, which is also a hindrance.
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