Shiba Inu (SHIB) is closing in on a major milestone in its deflationary journey, with the total number of coins burned nearing 410 trillion. However, despite this significant achievement, the impact on Shiba Inu’s price has been minimal, raising questions about the effectiveness of burn strategies in influencing market sentiment.

What is the 410 Trillion Burn Milestone?

Shiba Inu has made headlines in the crypto community for its unique approach to reducing its circulating supply. Since the introduction of its burn mechanism, Shiba Inu has seen more than 409 trillion SHIB tokens removed from circulation. This process, known as token burning, is intended to reduce supply, thereby increasing scarcity and potentially boosting the value of the remaining tokens.

The 410 trillion mark, while symbolic, represents a significant effort by both the Shiba Inu community and high-profile figures, like Vitalik Buterin, who performed a notable SHIB burn in mid-2021. These efforts, combined with community-driven burn initiatives, contributed to the massive reduction in supply. However, despite the impressive burn statistics, the market has yet to show any substantial reaction to these efforts.

The Slowdown in Burning Activity

While the initial burn events created a lot of excitement and fueled optimism among SHIB holders, the rate of burns has slowed significantly in recent years. Since 2023, there has been little to no noticeable burn activity, and the anticipated impact of approaching the 410 trillion burn threshold has failed to trigger any major price movements.

SHIB’s price has remained relatively stagnant, hovering around the $0.000015 level. Despite the significant milestone in terms of coins burned, this achievement seems to be priced in already, and the deflationary narrative behind SHIB is no longer having the same impact it once did.

Market’s Reaction to Shiba Inu’s Burns

The market appears to have already factored in the burn efforts, which means that unless there is a dramatic increase in the rate of burns, SHIB’s price is unlikely to experience significant upward momentum purely due to its deflationary supply.

Traders and investors are focusing more on active price movements and market sentiment, rather than symbolic burn milestones. The price of SHIB recently failed to sustain momentum above the $0.000016 mark and is currently struggling to maintain support at $0.000015. If SHIB can hold its ground above the support levels of $0.0000142-$0.0000145, it may manage to stabilize in the short term.

The Challenge of Sustaining Momentum

Shiba Inu’s price has faced resistance from the 200-day exponential moving average (EMA), a critical level that has kept SHIB trapped in a narrow price range. This resistance has capped recent rallies, preventing any meaningful breakout. The RSI (Relative Strength Index) is currently pointing to a neutral trend, suggesting consolidation rather than a major shift in momentum.

For SHIB to regain market interest, it will need more than just ceremonial milestones like the 410 trillion burn. A resurgence in investor activity, combined with renewed burning momentum, is necessary to kick-start another rally. The market is no longer reacting to historical accomplishments; it demands consistent action and tangible developments that can drive sentiment and price growth.

Shiba Inu’s Future: Action Over Milestones

The focus now shifts to what the Shiba Inu team and community can do to generate fresh interest and activity around SHIB. While the burn milestone is noteworthy, it is clear that more sustained efforts are required to push SHIB’s price higher. Whether that involves increased burn campaigns, new ecosystem developments, or broader adoption of SHIB in DeFi and beyond, investors are looking for signs of action that can lead to tangible price movements.

Without a change in strategy or an uptick in burning activity, Shiba Inu may find itself stuck in a consolidation phase for the time being. As the cryptocurrency market evolves, SHIB will need to keep up with broader trends in order to maintain its position among the top coins.

Conclusion

Shiba Inu’s approach to token burning remains an interesting aspect of its deflationary plan, with the project inching closer to burning 410 trillion SHIB tokens. While this is an impressive achievement, the market has largely priced in the effects of past burns, leaving the price of SHIB unaffected. For Shiba Inu to regain momentum and break free from its current price range, there will need to be a resurgence in burning activity or new catalysts that fuel renewed interest from investors. Until then, the 410 trillion burn milestone is more of a ceremonial achievement than a game-changer for the SHIB market.