SHIB Crashes 9 % In One Day Despite Burn Initiatives

The cryptosphere is going through a period of uncertainty marked by lasting volatility in the markets. Among the most closely followed assets, Shiba Inu (SHIB) stands out particularly. This memecoin, often compared to Dogecoin, is at the heart of an intense mobilization of its community, which recently burned more than 66 million tokens to reduce the circulating supply. Despite these efforts, the price of SHIB has collapsed, indicating the limits of token destruction mechanisms against market forces. This situation raises questions about the effectiveness of these strategies in a complex economic context.

Millions of SHIB destroyed, but a limited impact

Over the past week, the Shiba Inu community has intensified its efforts to reduce the circulating supply of its asset. According to data published by the Shibburn tracker, 66,156,811 SHIB have been permanently removed from the market by being sent to inaccessible wallets. This initiative aims to limit the abundance of the asset, a strategy that, in theory, could support its value and reduce selling pressure.

However, the results obtained are mixed. Compared to the previous week, the rate of token destruction has decreased by 24.11 %, which may reflect a decline in participation or a lesser effectiveness of these initiatives. This slowdown is even more visible in the last 24 hours, where only 2.85 million SHIB were destroyed, which represents a drastic decrease of 53 %. Additionally, these efforts do not succeed in curbing market volatility or sustainably stabilizing the price of Shiba Inu, despite a notable commitment from the crypto community.

A price collapse and its implications

Despite significant burning initiatives, the price of SHIB has experienced a notable decline of 9.36 % in a single day, dropping from $0.00002489 to $0.00002235. This drop was partially mitigated by a slight rebound of 2.11 %, but these fluctuations reflect a marked instability in an already weakened market. Such a decline comes after a temporary increase of 9.19% recorded on Thursday, driven by a fleeting bullish momentum from Bitcoin. However, this renewed optimism was not enough to sustain SHIB’s upward trajectory.

Beyond these fluctuations, several observers highlight a growing correlation between the performances of SHIB and Bitcoin. This dependency sheds light on a broader issue: the structural vulnerability of altcoins against the movements of the dominant cryptocurrency. Moreover, these variations raise questions regarding the effectiveness of token burns as a lever to stabilize or increase the value of cryptos. In a saturated crypto market, where supply and demand mechanisms appear to be dictated by external forces, these community initiatives struggle to create a lasting impact on the price.

The Shiba Inu is going through a critical period, where massive token burns show their limits in facing the growing expectations of crypto investors. These supply reductions, although significant, have not been sufficient to restore the value of SHIB, raising questions about their effectiveness. To regain trust, implementing more diversified strategies, such as improving use cases or adjusting the economic fundamentals of the project, may prove essential. This situation also highlights the challenges faced by community cryptocurrencies, confronted with persistent volatility and increased competition in the altcoin universe. The coming weeks will be decisive in determining whether Shiba Inu can adapt or continue to get stuck in a downward trend.