Shiba Inu Community Burns Over 1.3 Billion SHIB, Yet Price Remains Flat
High Burn Rate vs. Massive Supply
Data from various burn trackers indicates that the SHIB community successfully removed 1.31 billion tokens from circulation, marking a consistent effort to reduce the asset's overall supply. While such figures might seem impactful, market analysts point to Shiba Inu's immense circulating supply, still in the hundreds of trillions, as the primary reason for the muted price response. The current rate of burning, while significant in raw numbers, represents a minuscule fraction of the total tokens available. This means that while the deflationary mechanism is active, it has yet to create enough supply shock to trigger immediate, substantial price appreciation.
Beyond Burns: Factors Influencing Price
Experts emphasize that token burns, while a crucial component of Shiba Inu's long-term strategy, are not the sole determinant of its market value. Broader cryptocurrency market sentiment, increased adoption of the Shiba Inu ecosystem, and the development of real-world utility for SHIB are equally, if not more, vital for sustainable price growth. Despite the recent price stagnation, the community's persistent burning initiatives underscore its dedication to the project's long-term vision. This ongoing commitment, coupled with the evolving Shibarium layer-2 solution, is viewed as a foundation for potential future gains, rather than a guarantee of immediate rallies driven solely by token destruction.
