In the last 24 hours, the Shiba Inu (SHIB) ecosystem has recorded significant activity as volatility persists in the broader cryptocurrency space. A key metric of SHIB, its deflationary mechanism, the burn rate is on a massive surge. According to Shibburn, this index has spiked by a massive 8,193% as the network tries to checkmate the recent price crash.

Millions of Shiba Inu removed from circulation

This surge removed 3,106,197 SHIB from the circulating supply. Eight transactions involved the burning exercise, which sent the tokens to dead wallets. The last transaction recorded sent one million tokens in a single batch for incineration.

The Shiba Inu price lifted off momentarily in the early hours of Tuesday as the burn was being carried out. SHIB’s price peaked at $0.00001367 and dropped briefly in the early afternoon. The dog-themed meme coin, however, recorded a price rebound to $0.00001359 in the evening.

Unfortunately, the clawback did not last before it went on a downward slope from then onward. At the time of writing, data showed Shiba Inu traded at $0.00001324. Meanwhile, its market volume witnessed a significant 20.54% plunge to $135.49 million due to relatively waning demand on the open market.

Price volatility continues despite deflationary efforts

The current low price of SHIB suggests that the ecosystem’s huge burn action had a positive impact. However, the lack of sustained price performance hints that other market factors may likely affect the chain.

Some analysts have attributed Shiba Inu’s inability to shake off its price fatigue to the bearish outlook in the broader crypto space. Investors have monitored Shiba Inu’s resistance levels to see if the deflationary burn mechanism could boost its climb. However, this has not been sustained whenever the price rises.

While the SHIB team battles to stabilize price, it has also introduced a new portal, ShibDev, to assist developers building on Shibarium. The portal makes tools available for innovators to develop decentralized applications.