Shiba Inu Burn Rate Flatlines With 99% Crash, End Of The Road For SHIB?
June 05 2024 - 10:00AM
NEWSBTC
The Shiba Inu (SHIB) burn rate is again under the radar following a
drastic decline in the number of tokens burned. This development is
significant considering the impact that these token burns are known
to have on the meme coin. Shiba Inu Burn Rate Crashes By Over
99% Data from the burn tracking website Shibburn shows that Shiba
Inu’s burn rate has declined by 99.44% in the last 24 hours. Only
120,888 Shiba Inu tokens have been burned during this period, which
is way low compared to the over 21 million tokens that were burned
the previous day. Related Reading: Bitcoin Gets Massive
$500,000 Price Tag From Billionaire, Here’s Why The instability in
the number of Shiba Inu tokens burned daily continues to be a
problem for the meme coin’s ecosystem. This issue is believed to be
mainly due to the significant drop in the number of daily
transactions on the Shibarium network. The layer-2 network is known
to have contributed largely to the 76 billion Shiba Inu tokens that
were burned last year. However, Shibarium hasn’t had
much impact on these token burns since the start of the year with
its daily transactions dropping from millions recorded last year to
just a few thousand transactions as of late. This development has
hindered the network from deploying a part of the transaction fees
earned to Shiba Inu burns like it did last year. Meanwhile,
while Shiba Inu’s burn rate has dropped by over 99%, a positive
takeaway is that it has increased by almost 15% in the last seven
days. This is undoubtedly a welcome development that members of the
Shiba Inu community will be glad about. However, the focus remains
on sustaining this trend, given the positive impact it could have
on Shiba Inu’s price, especially heading into the latter stages of
the bull run. SHIB Price Remains Unaffected Shiba Inu’s price is
currently on an upward trend despite the decline in the burn rate.
Data from CoinMarketCap shows that the meme coin is up over 8% in
the last 24 hours. Shiba Inu’s trading volume is also up by over 7%
in the last 24 hours, signaling investors’ bullish sentiment
towards the meme coin. Related Reading: Dogecoin Social Sentiment
Turns Bearish And Drops To March Levels, What This Means For Price
On-chain metrics also paint a bullish picture for the meme coin.
Data from the market intelligence platform IntoTheBlock shows that
Shiba Inu whales have been accumulating the meme coin in the last
few days. Specifically, on-chain analytics platform SpotOnChain
revealed a whale that just recently acquired 149.3 SHIB tokens
Meanwhile, the Shiba Inu ecosystem has experienced notable network
growth, suggesting that new crypto investors are rotating their
capital to the meme coin. Shiba Inu will likely continue to record
an increased demand, with meme coins projected as one of the
leading narratives in this bull run. Featured image created
with Dall.E, chart from Tradingview.com
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