Why has the burn rate of Shiba Inu skyrocketed, but the price has not increased?

Recently, we have seen a surge in the amount of Shiba Inu (SHIB) being burned—over 100,000% increase in just 24 hours! It sounds impressive, but the price hasn't significantly pumped. How is that possible?
Here is a quick analysis:
1. Destruction reduces supply, but does not guarantee an increase in demand.
Token burn means that the available number of SHIB in the market decreases. However, for the price to pump, demand must increase or at least remain stable. If buyers do not actively step in, the price may not react immediately.
2. Market speculation may offset the destruction effect.
Some investors may sell early, expecting to gain quick profits from the destruction news, thereby exerting temporary downward pressure on the price.
3. Multiple factors simultaneously affect the price
Overall sentiment in the cryptocurrency market, macroeconomic events, and large-scale sell-offs may keep prices low, even as supply decreases.
4. The destruction effect takes time to reflect in the price.
Supply reduction supports price growth in the medium to long term, but it does not always manifest immediately. The effects of destruction may take days or weeks to become apparent.

The large-scale burning of SHIB is a positive signal for token economics and tightens the supply. However, for the price to surge, continuous demand and favorable market conditions are needed. Therefore, patience and close attention are key.
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