SHIB advances despite a sharp slowdown in token burns
Shiba Inu (SHIB) posted a notable recovery over the past 24 hours, rising 5.14% to $0.000006115. The move came even as its burn activity weakened dramatically. Data from Shibburn showed that only 483 SHIB were burned during the same period, representing a steep 99% decline in the burn rate.
For SHIB, token burns are often viewed as a core part of its deflationary narrative, with lower circulating supply typically seen as supportive for price stability over time. That makes the latest divergence especially notable: the token appreciated even while one of its commonly cited support mechanisms lost momentum.
Higher trading activity may explain the move
Market participation appears to have strengthened alongside the price increase. SHIB’s 24-hour trading volume rose 14.52% to $145.07 million. The increase suggests that factors beyond burn metrics were influencing the token’s short-term performance.
According to the source material, one possible explanation is that SHIB had entered oversold territory, making it more likely to see a technical rebound. At the same time, signs of broader recovery across the crypto market may also have provided support for the token’s latest advance.
Long-term questions remain around the burn mechanism
While the short-term price action has turned positive, the sharp drop in burn rate raises fresh questions about how effective the mechanism can be in supporting SHIB over a longer horizon. If burn activity remains subdued, the market may increasingly look to sentiment, trading flows, and wider market conditions instead of supply reduction alone.
For now, the data suggests SHIB’s latest move was driven more by renewed trading interest and potential oversold recovery dynamics than by deflationary pressure. Investors will likely watch whether burn activity rebounds, whether volume stays elevated, and whether the broader crypto market can maintain its recovery trend.