Shiba Inu Burn Rate Drops Despite Massive Token Transfer

The Shiba Inu (SHIB) ecosystem has seen a significant number of tokens removed from circulation, with over 59.4 million SHIB sent to anonymous "burn" wallets in the past seven days. According to the Shibburn tracker, this substantial transfer of meme coins was primarily driven by three large transactions, which accounted for a combined total of over 47 million tokens. The process of "burning" tokens is designed to reduce the overall supply of a cryptocurrency, which can, in theory, create scarcity and support its price.

Price Rally Not Fueled by Burns

While the community often hopes that a high burn rate will lead to a price increase, the recent rally in SHIB was not a direct result of these burns. Instead, the article points out that the token's price surge of 11.52%, which saw it reach a local high of $0.00001350, was primarily attributed to the broader market following Bitcoin's upward movement. This rally was triggered by a statement from Federal Reserve chairman Jerome Powell, which had a positive effect across the crypto market. This highlights that while token burns are a key part of the Shiba Inu ecosystem, the token’s price remains heavily influenced by the wider market trends and macroeconomic events.