Shiba Inu Burn Rate Skyrockets 6,153% Despite Crypto Market Sell-Off

• Shiba Inu’s burn rate surged by 6,153% in a week, with over 5.7 billion SHIB tokens removed from circulation.
• Massive burn on Nov. 1 saw 5.6 billion SHIB eliminated in six transactions, contributing significantly to the burn rate spike.
• Despite the burn efforts, Shiba Inu’s price faced declines, mirroring a broader market trend affecting Bitcoin and other cryptos.

Shiba Inu (SHIB) experienced a remarkable rise in its burn rate, reaching an unprecedented 6,153% increase over the past week. According to Shibburn X’s latest data, approximately 5.76 billion SHIB tokens were burned within seven days, marking an extraordinary boost in the burn rate by 6,137%. This burn event has been propelled by collective efforts from the Shiba Inu ecosystem and contributions from the active Shiba Inu community.

Key Burn Event Drives Weekly Burn Rate

A significant factor in this burn surge occurred on November 1, when a large-scale burn took place. On that day alone, 5.6 billion SHIB tokens were permanently removed from circulation through six strategic transactions. These transactions highlighted the community’s commitment to decreasing the token supply, aiming to add scarcity and support the token’s long-term value. 

October recorded an overall burn of 6.13 billion SHIB tokens spread across 105 transactions. With billions of tokens transferred to inactive, or “dead,” wallets, the cumulative burn efforts align closely with the Shiba Inu community’s ongoing strategy to limit supply. Despite these efforts, no tokens were burned in the last 24 hours, a surprising lull following the surge earlier in the week.

Crypto Market Downturn Pressures Shiba Inu Price

Despite the aggressive token burn, Shiba Inu’s price witnessed a decline after peaking at $0.00001982 on October 29. If it closes in red today, this will mark the fifth consecutive day of losses for the token. Shiba Inu’s price dipped by around 4% over the last 24 hours, currently trading at $0.00001709. This decline mirrors a broader market trend, as Bitcoin and other cryptocurrencies experienced similar drops.

The recent crypto market sell-off has seen Bitcoin fall below the $69,000 level, impacted by substantial profit-taking. Over the past day, Bitcoin lost 2%, adding to the pressure on SHIB and other assets. Nearly $235 million in trading positions, primarily long bets, were liquidated, potentially increasing the selling pressure across digital assets. For SHIB, this broader market retracement has raised the stakes for retaining critical support levels near its 50-day moving average at $0.000017.

Potential for Relief Rally Amid Declining Pressure

While SHIB risks further declines, a short-term relief rally may be possible if market conditions stabilize. Should this happen, Shiba Inu could recover toward its 200-day moving average target of $0.00001845, providing potential upside if sellers ease off. Nevertheless, SHIB remains under close watch as it navigates this volatile period within the crypto landscape.