Shiba Inu's daily burn rate jumped 5,223.98% in 24 hours, permanently destroying 401,219,021 tokens, according to the SHIBBurn portal. SHIB closed the same session up 27.14% at $0.00000540 on trading volume of $700 million. The two moves are not cause and effect: the burned tokens are a microscopic drop against SHIB's total supply.
Shiba Inu's burn rate posted a vertical spike of 5,223.98% over the past 24 hours, permanently destroying 401,219,021 tokens, according to the SHIBBurn portal. That wave rewrote the week's statistics, which had previously looked rather sleepy: over the past seven days the burn rate increased by 816.02%, removing 457,511,537 SHIB from circulation.
Almost the entire weekly burn volume therefore went up in smoke during the past 24 hours alone, and the conveyor belt has not stopped for a minute. Just one transaction over the past hour sent another 34,738,227 tokens to a burn address.
SHIB settles at $0.00000540 on $700 million of volume
Exchanges ran hot at the same time. SHIB recorded a net daily gain of 27.14%, although at the peak of the excitement the price jumped by as much as 36%.
It then settled at $0.00000540, supported by trading volume of $700 million. Its market capitalization climbed to $3,179,718,980, bringing the asset back to around 25th place in CoinMarketCap's global rankings.
Burned tokens did not move the price
For the meme coin, though, cause and effect should not be confused here. The hundreds of millions of burned tokens are physically incapable of moving the coin's price, a microscopic drop in an endless ocean given a total supply that still stands at 589,159,143,761,521 tokens.
The real mechanism works in the opposite direction. It was the powerful spike in spot market trading activity that drove higher volumes and the accompanying transactions. Nevertheless, the figure of 5,223% acted as an extremely powerful psychological factor for holders.
Attention now sits on SHIB's price behavior across spot exchanges. The open question is whether new buyers can sustain the current momentum or whether mass profit-taking pushes the price back down to the low $0.0000040s.
Source: U.Today
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