Shiba Inu Burn Rate Nosedives Amid Crypto Market Turmoil

The cryptocurrency market recently experienced one of the largest liquidation events in its history, triggering significant price declines across a wide array of digital assets. Among those heavily affected was Shiba Inu (SHIB), which not only saw its price plummet but also recorded a sharp drop in its burn rate, further emphasizing the fragility and volatility gripping the market.

Shiba Inu Burn Rate Falls by 99.29%

Data from Shibburn revealed that on October 11, Shiba Inu's 24-hour burn rate plummeted by an alarming 99.29%. During that period, only 69,420 SHIB tokens were burned, a drastic reduction compared to usual activity. Over the last seven days, the cumulative SHIB token burn rate stood at 49,803,691—representing a 28.7% decline compared to the previous week. This marked slowdown in the coin-burning mechanism raises questions about the community’s engagement and the asset’s deflationary trajectory during turbulent market conditions.

Dramatic Price Decline Amid Surging Trading Volume

SHIB was not immune to the broader market sell-off, as its price tumbled to a low of $0.0000085—the lowest it has touched since January. At the same time, trading volume skyrocketed, surging by an eye-catching 367%. Approximately 74.85 billion SHIB tokens changed hands during this period, reflecting heightened market activity amidst the uncertainty.

Market analysts attribute these developments to a confluence of macroeconomic pressures and cascading liquidations that have amplified volatility. “This sharp downturn stems from a combination of macroeconomic challenges and massive liquidations. The increasing volatility signals the need for heightened vigilance in the short term,” commented industry experts.

Crypto Market Sees $19.3 Billion Liquidated in Historic Event

In what is now regarded as the most significant liquidation event in cryptocurrency history, nearly $19.3 billion (approximately 27 trillion KRW) in crypto assets was liquidated within a single day. This catastrophic event underscored the vulnerabilities within the altcoin sector. Coinbase Director Conor Grogan highlighted the severity of the situation, describing it as “the most severe altcoin crash we’ve witnessed,” and pointing to patterns of irregularity in market behavior that exacerbated the fallout.

Shiba Inu Price Stabilizing at Current Levels

Despite the chaos, Shiba Inu appears to have found temporary stability. As of 10:30 a.m. KST on October 12, SHIB was trading at $0.0000099 on Binance and 0.0151 KRW on the Korean exchange Upbit. Whether this recovery indicates a consolidation phase or a brief respite before further volatility remains uncertain, leaving investors to closely monitor the asset’s next moves.

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