Shiba Inu Burns 4 Million SHIB as Supply Stays Steady at 589 Trillion, Will Price React?

Shiba Inu’s burn rate slightly rose 63% as over 4 million SHIB were burned in the last 24 hours, according to Shibburn website data. Shiba Inu total supply stays at 589,245,487,886,725 SHIB, while the circulating supply is at 585,475,487,843,975 SHIB.

A total of 410,754,512,113,274 SHIB have been burned from the initial supply of 1 quadrillion tokens, according to Shibburn data. This includes 410 trillion SHIB burned by Ethereum creator Vitalik Buterin. This represents about 90% of the total SHIB he was gifted by the Shiba Inu developers. This removed over 40% of the total supply from circulation.

In 2021, Shiba Inu sent a massive chunk of SHIB tokens to Vitalik Buterin’s wallet without asking. He split the remainder in half. One half went to CryptoRelief, which used part to fund medical infrastructure in India and part to support Balvi, Buterin’s own research initiative.

Will price react?

At the time of writing, SHIB was down 1.04% in the last 24 hours to $0.00000585, entering its second day of drop since a high of $0.0000063 on March 13.

Shiba Inu rose for five days at a stretch from a low of $0.00000528 on March 9 to reach $0.00000063 on Friday before retreating. Shiba Inu fell to a low of $0.00000582 early Sunday as short sellers added to their positions.

The impact of the burn remains yet to be seen, but it might be indirect by reducing the amount of SHIB in circulation. The price direction of SHIB in the short to immediate term might be determined by market sentiment.

Altcoins continue to underperform, down significantly from their peaks. Likewise, mentions of an “altseason” on social media have plunged to their lowest level in at least two years.

The daily RSI is slightly below 50 or neutral, which suggests the possibility of sideways trading as the market seeks stability from a persistent sell-off, which pulled major cryptocurrencies, including SHIB, to multi-month lows.

Until a clear macro catalyst or wave of new capital arrives, the price might consolidate near the upper end of the range building since February rather than seek a breakout.