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Shiba Inu (SHIB)’s token burn activity has come to a complete halt, placing the ecosystem’s strategy of defending its price by reducing supply in its greatest crisis yet.
According to cryptocurrency-focused outlet U.Today on Feb. 14 (local time), SHIB’s token burn rate plunged 100% over the past 24 hours, resulting in an unprecedented situation where not a single token was burned. Data from Shibburn shows this is already the second time within a week that burn activity has fully stopped, coinciding with a steep price decline and heightening investor anxiety. Analysts say shrinking ecosystem activity has sapped momentum from attempts to boost value through token burns.
The Shiba Inu ecosystem has operated a deflationary mechanism that periodically burns tokens to reduce circulating supply and increase scarcity. However, with burn activity now completely suspended, SHIB’s circulating supply remains unchanged at approximately 585,423,776,344,682 SHIB. Even in the most recent burn conducted about 48 hours ago, only 777,777 SHIB were destroyed, an amount deemed insufficient to have any meaningful market impact.
Experts note that the absence of burn activity further complicates SHIB’s recovery prospects. Analyst Ali Martinez warned that SHIB’s current structure is highly fragile and that if key support levels break down, there is a risk of a further سقوط that could erase all gains accumulated over the past three years. Martinez added that with overall market weakness persisting, the non-functioning burn system is exacerbating technical vulnerabilities.
The broader digital asset market has recently seen shrinking investor sentiment across the meme coin sector amid heightened volatility in Bitcoin (BTC). Shiba Inu has also experienced declining trading volumes and reduced activity from whale holders, with key ecosystem indicators trending downward. With the burn mechanism failing to operate smoothly, the lack of a new catalyst capable of driving a market rebound has been cited as a cause of prolonged price stagnation.
Shiba Inu’s developers and community are exploring various measures to increase the burn rate, but it is expected to take considerable time before these efforts result in a tangible reduction in circulating supply. The current situation—where oversupply issues remain unresolved and burn activity has ceased—clearly illustrates the harsh reality facing SHIB. Investors are maintaining a cautious approach while closely monitoring market developments until the ecosystem’s self-correcting mechanisms regain momentum.
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