Shiba Inu Tokens Burn Off in Massive Proportions: Over 600 Million Tokens Destroyed Following a 17000% Boost in Burn Rate
The Shiba Inu (SHIB) cryptocurrency is making waves in the crypto market with the introduction of a new burn engine on the Base blockchain. This development significantly enhances the deflationary design of the SHIB ecosystem, making it one of the most intriguing meme coins to watch.
At the time of writing, the price of Shiba Inu stands at $0.00001332, marking a 5.86% daily drop. Despite this dip, the Shiba Inu community remains active, with traders showing signs of indecision as the Relative Strength Index (RSI) currently stands at 47.08, indicating a potential entry into the bearish zone.
The new burn engine deployed on the Base blockchain integrates automatic token burns linked directly to user activity. This means that when users trade using SHIB’s "Creator Coin" feature on platforms like Zora, fees collected are automatically converted into burned SHIB tokens. Essentially, this mechanism operates like a 24/7 token destruction machine.
This mechanism ties transaction volume with deflation, meaning the more the network is used, the more SHIB tokens are permanently removed from circulation. This systematic reduction of supply supports the ecosystem’s long-term deflationary blueprint by gradually tightening the available tokens, which could set a stronger price floor and potentially increase token value if demand remains steady or grows.
The impact has already been substantial. In a single day, over 600 million SHIB tokens were burned, causing the burn rate to surge by over 16,000 percent. The integration on Base represents a strategic move to embed deflation deeper into SHIB’s blockchain framework, making token burning an integral and automatic part of ecosystem operations rather than an ad hoc or external process.
The Shiba Inu ecosystem is funding token burns through the "Creator Coin" launch on Zora. Technicals suggest Shiba Inu is moving within a symmetrical triangle, a pattern often preceding a breakout. The Bollinger Bands are beginning to squeeze, suggesting a potential breakout above $0.00001407, the nearest resistance for Shiba Inu, with the Bollinger Band upper limit at $0.00001561.
However, failure to hold $0.00001253 may invite downside retests. The MACD indicator shows that the MACD line (blue) is below the signal line (orange) with sellers in charge. The histogram is printing substantial red bars, indicating increased bearish activity. The Balance of Power (BoP) indicator reading is -0.13, indicating that sellers are overwhelming buyers.
Whale dominance in the Shiba Inu market is currently at 61.51%, reflecting a dominant whale presence. Historically, such heavy concentration suggests strong conviction or long-term positioning. The new burn engine makes Shiba Inu evolve toward a burn-to-earn infrastructure, a move that could reshape SHIB’s supply-demand dynamics, making deflation a core, ongoing aspect of its ecosystem economics.
Investors are closely monitoring the Shiba Inu (SHIB) cryptocurrency as the integration of a new burn engine on the Base blockchain drives technology to enhance the deflationary design of the SHIB ecosystem. This automation in token burning links user activity directly to the burn mechanism, acting as a 24/7 token destruction machine and potentially creating a stronger price floor by gradually tightening the available SHIB tokens.
