SHIB Burn Rate Surges 434%: Millions of Tokens Permanently Removed From Circulation
Shiba Inu's burn rate surged 434.63% in 24 hours as millions of SHIB were sent to dead wallets, while the token's RSI dropped to oversold levels amid prolonged bearish price action.
The Shiba Inu ecosystem witnessed a dramatic spike in token burning activity over the past 24 hours, with the burn rate jumping an impressive 434.63%. The surge came as millions of SHIB tokens were dispatched to dead wallets — blockchain addresses from which they can never be retrieved — effectively reducing the overall supply of the meme-based cryptocurrency.
According to data published by the Shibburn tracking platform, approximately 3.32 million SHIB tokens were permanently destroyed within the 24-hour window. While that figure may appear modest at first glance, it represented a substantial leap compared to the previous day's burn volume, which accounts for the dramatic percentage increase in the burn rate.
Looking at a broader timeframe, Shiba Inu's peak burn activity this week occurred on June 24, when 5.5 million tokens were incinerated in a single day — the highest daily figure recorded over the seven-day period. In total, 26.52 million SHIB were burned throughout the week, though that still reflected a notable 36.39% decline compared to the prior week's cumulative figures.
The drop in weekly burn volume aligns with a broader bearish trend in SHIB's price action. The token endured four consecutive days of losses before staging a modest recovery. Interestingly, the uptick in the daily burn rate appeared to coincide with this price rebound. At the time of reporting, Shiba Inu was trading at $0.000004266, reflecting a 2.08% gain over the preceding 24 hours according to CoinMarketCap. However, SHIB remained firmly in negative territory on a weekly basis, still down 8.8%.
The broader crypto market had come under pressure earlier in the week following the release of May's personal consumption expenditures (PCE) price index — a key inflation metric closely monitored by the U.S. Federal Reserve. The core PCE reading, which strips out volatile food and energy categories, climbed to an annual rate of 3.4% in May, the highest level recorded since October 2023. On a month-over-month basis, the index rose 0.3% from April, adding to concerns about persistent inflationary pressures.
From a technical standpoint, Shiba Inu's chart has painted a grim picture in recent weeks. The token has recorded only one positive daily close out of the last 12 sessions since mid-June. This sustained downward pressure has pushed key momentum indicators deep into oversold territory. The daily Relative Strength Index (RSI) has dropped below the critical 30-point threshold — often considered the boundary of oversold conditions — and currently sits at 26.
Historically, markets tend to attract renewed buyer interest when RSI readings fall this low, as the indicator signals that recent selling may have been excessive. However, analysts caution that an RSI below 30 alone does not guarantee an immediate reversal — it merely reflects the severity of recent price action. That said, with SHIB now at deeply oversold levels, the probability of a short-term relief rally has increased, and traders are watching closely for any signs of momentum confirmation.
