Anika Begay
The Shiba Inu (SHIB) The burn rate has plummeted again with the number of tokens burned in the last 24 hours, painting a bearish picture for the meme coin. Shiba Inu’s burn rate has fluctuated continuously since the beginning of the year, with a lack of a catalyst to sustain a significant amount of tokens burned each day.
Shiba Inu’s Burn Rate Decreases by 100%
Data from the Shibburn burn monitoring website shows that the Shiba Inu burn rate has decreased by over 100%, with zero tokens burned in the last 24 hours. Interestingly, no SHIB tokens have been burned in the last three days, with the last burn the token occurred on August 13, when 802,246 Shiba Inu tokens were burned.
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Further data shows that the weekly Shiba Inu burn rate has dropped by more than 62%, with approximately 42.9 million SHIB burned in the last seven days. This drop in the Shiba Inu burn rate coincides with the recent transition to an automated burning mechanism. 70% of the basic transaction fees earned on the layer 2 network are automatically converted into SHIB and burned.
It was expected that this transition to an automated burning mechanism would have a positive impact on the Shiba Inu burn rate and could increase the number of tokens burned each day, but so far this has not been the case. A plausible explanation is that the transaction fees earned on the Shibarium network have not been sufficient to implement automated daily token burns.
Shibarium Network Activity has decreased in recent months. Data from Shibariumscan shows that daily transactions on the layer-2 network are stagnant and fluctuating between 3,000 and 8,000 over the past month. The highest daily transaction recorded during this period was on August 1st, with 8,630 transactions processed that day.
As a result, transaction fees on the network are far below what the layer-2 network used to see, especially when it averaged around 5 million daily transactions as of December 2023. For example, Shibarium earned 6.8 BONE ($2) in transaction fees on August 15. Therefore, it is understandable that the team will be hesitant to implement automated daily burnouts.
On-chain metrics also paint a bearish picture
Shiba Inu On-Chain Metrics also paint a bearish picture for the meme coin, with a broad-based decline. Data from the market intelligence platform In the Block shows that large transactions of the meme coin have dropped by more than 14%, indicating a lack of interest among SHIB Whales.
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The percentage of Shiba Inu Door currently in the money has dropped to 45%, with most holders currently holding at a loss. Meanwhile, the network’s net growth is still declining, as there is a lack of new investors in the Shiba Inu ecosystem.
At the time of writing, the Shiba Inu is trading at around $0.00001338, down nearly 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
