Why SHIB Burns Don’t Always Mean Price Pumps
Over the past 24 hours, SHIB’s burn rate has spiked sharply. On shibburn.com you can check the chart and see the exact numbers - more than 5 million SHIB burned in just one day.
Does this mean the price of SHIB is about to rally? After all, that’s the whole point of burning tokens, right?
Not necessarily. Here’s why. If the burned tokens were being bought back from the open market (like BNB, for example), that could send a bullish signal - buyers would know there’s always demand, which usually encourages more purchases and pushes prices higher.
But SHIB burns work differently.
- Yes, part of the ecosystem’s revenue goes into buying and burning SHIB. But these millions didn’t come from there - revenues couldn’t have jumped that fast overnight.
- What we’re seeing is tokens being destroyed directly by holders - the team or users. That’s less about “someone buying” and more about “someone throwing tokens away” without getting anything back.
This kind of burn is not bullish - it’s actually bearish. And sure enough, during the same 24 hours when these massive burns took place, SHIB’s price dropped by 3.5%.
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