 ▲ Shiba Inu (SHIB) |
Despite the broader uptrend in the cryptocurrency market, Shiba Inu (SHIB) has seen its token burn activity halted for two consecutive days, putting a brake on its price-support strategy driven by supply reduction.
According to Cointelegraph on March 6, the burn rate of the leading meme coin Shiba Inu recorded 0%, with not a single token burned for the second straight day. At a time when the overall digital asset market is on the rise, the suspension of SHIB’s core defensive mechanism—the burn system—is highly unusual. On-chain analytics platforms such as Santiment interpreted the stagnation in burn activity as reflecting reduced investor participation and weakened market sentiment.
The Shiba Inu ecosystem periodically sends tokens to dead wallets to permanently remove them from circulation, adopting a burn mechanism aimed at increasing asset scarcity by reducing supply. Over the past 24 hours, 0 SHIB were burned, a stark contrast to previous periods of active burning. Data from burn tracker Shibburn also showed no recorded burn transactions, heightening concerns within the community.
Shiba Inu is currently trading at $0.00000553, down 2.64% over the past 24 hours. While major cryptocurrencies, including Bitcoin (BTC), continue their rally, SHIB has declined, underperforming the broader market. Its market capitalization stands at approximately $3.3 billion, with trading volume at $52 million, indicating stagnant buying pressure.
Experts point out that the halt in burn activity is linked to decreased transaction volume on the Shiba Inu network. Since a portion of transaction fees on the Shibarium Layer 2 network is allocated to token burns, reduced network activity naturally leads to a decline in burn volume. The Relative Strength Index (RSI) remains neutral at around 57, but minimal changes in open interest suggest that a short-term price rebound may be difficult.
The Shiba Inu community hopes for a price recovery driven by the reactivation of the burn mechanism and renewed network activity, yet no concrete signs of resumed activity have been detected so far. The circulating supply remains massive at approximately 589,606,479,216,519 SHIB. Shiba Inu continues efforts to overcome the limitations of meme coins and prove its tangible value through ecosystem expansion and technical enhancements.
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