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Shiba Inu (SHIB), the dog-themed meme coin, has triggered its deflationary mechanism over the past 24 hours. SHIB recorded a light cremation, a notable gesture just before 2024 left the scene. The project has seen over 1.7 million SHIB tokens removed from circulation.
Impact of the burning mechanism on SHIB price stability
Data from Shibburn, an online platform that tracks burning activity on the Shiba Inu network, reveals that the burning rate has increased by 243.34% in the last 24 hours. Specifically, 1,717,872 SHIB tokens were sent to dead wallets.
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Shiba Inu, renowned for its daily burning activity, uses this mechanism to control the circulating supply of its tokens. This deflationary measure helps keep prices stable and slow down the decline in price values. Therefore, the 243.34% increase in burn rate is significant as it helps achieve these goals.
Surprisingly, on average, SHIB is still down 2.76% and trading at $0.00002109, according to to data from CoinMarketCap. Meanwhile, the market volume soared significantly by 31.11% to $538.36 million as market participants engage in the latest trading frenzy on the last day of the year.
However, a deeper analysis of SHIB’s price action shows that the meme coin was in freefall and had plunged to a low of $0.00002054. It is likely that the burn mechanism helped stabilize it and supported its rebound to current levels.
Can SHIB find a new price in 2025?
Over the past 30 days, SHIB has battled volatility to reclaim its price of $0.00003016. Despite the bull cycle, Shiba Inu’s performance in December fell below investor expectations in the broader cryptocurrency space.
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Analysts suggest that for SHIB to test higher prices again in 2025, the community needs to become more engaged and developers need to roll out new projects to boost participation.
As reported by U.Today Shytoshi Kusama, the mysterious leader of the Shiba Inu, has promised an exciting 2025, with optimistic plans for the ecosystem. According to Kusama, 2025 will be epic.