SHIB Burn Rate Surges 434% as Millions of Tokens Sent to Dead Wallets
Shiba Inu's token burn activity has experienced a dramatic spike over the past 24 hours, with the burn rate climbing 434.63% in a single day. The sharp increase was triggered by millions of SHIB tokens being permanently removed from circulation by sending them to dead wallets — addresses from which they can never be retrieved or used again.
Data from the Shibburn tracking platform confirmed that approximately 3.32 million SHIB tokens were burned within the 24-hour window. While the absolute number may appear modest at first glance, it represents a substantial jump compared to the previous day's burn totals, explaining the significant percentage increase in the burn rate.
Looking at the broader weekly picture, Shiba Inu recorded its highest single-day burn of the week on June 24, when 5.5 million SHIB tokens were torched. Over the entire seven-day period, the cumulative burn volume reached 26.52 million SHIB. However, this still reflects a 36.39% decline compared to the prior week, pointing to a generally softer burn trend on a weekly basis.
The uptick in daily burns coincided with a modest price recovery for SHIB. After enduring four consecutive days of price declines, the token managed to bounce back, gaining 2.08% over 24 hours to trade at $0.000004266, according to CoinMarketCap. Despite the daily recovery, Shiba Inu remains down 8.8% on a weekly basis, underscoring the broader bearish pressure still weighing on the asset.
Shiba Inu's prolonged price slide has pushed its technical indicators into oversold territory. Since mid-June, the token has recorded only one positive trading day out of twelve sessions. This relentless downward movement has driven the daily Relative Strength Index (RSI) below the critical 30-level threshold — a level commonly used to signal oversold market conditions. At the time of reporting, the RSI sat at 26.
From a technical analysis standpoint, when RSI readings fall below 30, it often signals that selling pressure may be exhausting itself, which can sometimes precede a relief rally. However, analysts caution that an RSI below 30 alone does not guarantee an immediate reversal — it reflects what has already occurred rather than predicting what comes next. Confirmation of a genuine trend shift would require additional price action signals.
The broader cryptocurrency market also faced headwinds earlier in the week following the release of May's Personal Consumption Expenditures (PCE) price index — the Federal Reserve's preferred measure of inflation. The core PCE reading, which excludes volatile food and energy prices, came in at an annual rate of 3.4% for May, the highest level recorded since October 2023. On a monthly basis, it rose 0.3% from April. This data added uncertainty to investor sentiment across risk assets, including crypto markets.
Despite the challenging macro backdrop and persistent selling in recent weeks, Shiba Inu's current oversold RSI reading keeps the door open for a potential short-term price rebound. Whether the token can sustain any recovery momentum will likely depend on both broader market conditions and continued developments in its burn activity.
