The SHIB burn rate skyrockets by 173% but the price remains dormant

I just saw that the burn activity in Shiba Inu exploded in the last 24 hours. Nearly 839,000 SHIB tokens were burned, representing a massive increase of 173.579% compared to yesterday. The community is ramping up efforts to reduce the supply of this memecoin, but here’s the strange part: the price hardly moved. It only increased by less than 1% in the same period.

On-chain data shows that these burns came from two quite large transactions (580,858 SHIB and 258,014 SHIB), both from the same address. A deeper analysis reveals that the wallet monarkoshi.eth, funded by Coinbase, was the one that initiated all this. It moved the tokens to that address, which then sent them to the burn address. Everything happened in the early hours of the day, causing that spike in the SHIB burn rate.

So far, the total tokens burned amount to approximately 410.7 billion SHIB, representing around 41% of the maximum supply of 999 billion. So technically, inflationary pressure should be decreasing, right? Well, not exactly. The current price hovers around $0.00, with a mere +0.80% move in 24 hours.

What catches my attention most is that trading volume is falling. In 24 hours, spot volume dropped 9.6% to $24.3 million, and futures volume fell 8% to $96.9 million. Looking at the whole week, the decline is even more dramatic: spot decreased 45.8% to $169.18 million, and futures dropped 49% to $768.9 million. Without volume, even an impressive burn rate can’t push the price upward.

Some analysts like Vuori Trading remain hopeful, viewing this as a bearish trap and predicting a potential rebound once accumulation ends. But for now, bullish activity on the network simply isn’t translating into price movement. It seems the overall market is also somewhat flat, and SHIB is just following the general movement of Bitcoin and major altcoins.