In a surprising turn of events, the Shiba Inu ecosystem witnessed a dramatic decline in token burn activity over the past 24 hours. Data from Shibburn indicates that not a single SHIB token was removed from circulation during this period, resulting in a 100% drop in the daily burn rate. This comes on the heels of significant increases seen just a day earlier.
Recent Volatility in Burn Rates
The preceding day saw a substantial burn of 91,120,170 SHIB tokens, driving the daily burn rate up by an impressive 182,140%. However, the latest observations reveal zero tokens were directed to burn addresses. While such fluctuations might suggest technical issues, they often stem from varying levels of community engagement and transaction volumes.
Over the past week, a total of 401.30 million SHIB tokens have been burned, with the 30-day tally reaching 707.51 million. To date, a staggering 410.84 trillion SHIB have been withdrawn from circulation, corresponding to a 41.08% reduction from its initial one quadrillion supply.
The complete absence of SHIB burns in the last 24 hours suggests a halt in token transfers to burn addresses during this measurement window, though it does not necessarily indicate a technical network issue.
Persistent Price Pressure
Over the last day, SHIB’s price experienced a 0.89% decline, settling at $0.00000536. This downward pressure comes as part of a broader cryptocurrency retreat, exacerbated by Federal Reserve meeting minutes suggesting a potential rate hike before year-end.
According to CoinGlass, total liquidations in the crypto market reached $969 million in the past 24 hours. During this period, Shiba Inu suffered notable depreciation for the second consecutive day, dropping to $0.000005099. This follows a four-day decline from its peak of $0.000006 on October 5.
Leverage Concerns Pose Market Risks
During this price movement, SHIB momentarily dipped below its 50-day moving average and even breached its 200-day moving average before recovering. This technical volatility coincides with broader pressures across the altcoin market.
On-chain analysis by Glassnode has noted robust altcoin growth until the end of September. Despite this, leveraged positions have yet to be fully unwound. Glassnode reported that open positions relative to market capitalization in large-cap altcoins have reached levels exceeding their one-year standards.
Glassnode highlights that maintaining open positions amid falling prices could heighten the risk of compulsory liquidation.
The increase, according to Glassnode, partly results from positions remaining active during price declines. This situation leaves the possibility of forced liquidations in leveraged trades if market pressure persists.
