Uncertainty Surrounds Shiba Inu’s Price Trajectory Amid Sudden Drop in Burn Rate and Market Volatility
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Shiba Inu burn rate plummets 90% – How this will impact SHIB prices in 2025
In a recent turn of events, the burn rate of Shiba Inu (SHIB) has plummeted by an astonishing 90.69%. This dramatic drop in burn activity raises concerns about the potential impact on the token’s price trajectory heading into 2025.
For context, burn rate refers to the pace at which tokens are permanently removed from circulation, thereby reducing supply and increasing scarcity. While this mechanism is theoretically designed to drive up demand, recent data has sparked uncertainty regarding its effectiveness in boosting SHIB’s value.
The most striking aspect of the latest data is the sudden slowdown in burn activity, as a whopping 506,465 SHIB tokens were eliminated from circulation over the past 24 hours – a significant decline compared to previous levels. In contrast, the weekly burns showed an unimpressive 4.5% increase with approximately 65.19 million SHIB tokens burned during the past week.
This sharp drop in burn rate may have far-reaching implications for SHIB’s price movement going forward. While the community’s efforts to reduce supply remain active, even if only marginally, it is uncertain whether these efforts will be enough to significantly alter the token’s trajectory as a result of external market conditions.
Meanwhile, whale transactions continue to exert significant influence over the market. Our analysis of Santiment data reveals a noticeable correlation between large-volume trades and SHIB’s price movement during key price rallies in October and November 2024. This correlation suggests that these transactions serve as a double-edged sword – they can intensify speculative price surges, but also amplify corrections.
As we head into 2025, it becomes increasingly clear that neither whale-driven liquidity nor burn initiatives have thus far triggered substantial price rallies. The primary reason for this stagnation lies in the ongoing macroeconomic uncertainty that weighs heavily on investor sentiment.
Source: ambcrypto.com
