The burn rate of Shiba Inu tokens has drastically dropped, indicating a concerning trend for the meme cryptocurrency. The burn rate of Shiba Inu tokens has been inconsistent since the beginning of the year, lacking a significant catalyst to sustain a high daily burn rate.
Significant Decline in Shiba Inu’s Token Burn Rate
Data from Shibburn’s burn tracking website reveals that the burn rate of Shiba Inu tokens has decreased by over 100%, with no tokens burned in the past 24 hours. Surprisingly, there have been no token burns in the last three days, with the most recent burn occurring on August 13, where 802,246 Shiba Inu tokens were burnt.
Moreover, the weekly burn rate of Shiba Inu tokens has declined by more than 62%, with approximately 42.9 million tokens burnt in the last seven days. This drop in burn rate coincides with Shibarium’s recent transition to an automated burn mechanism. Under this mechanism, 70% of the base transaction fees on the layer-2 network are automatically converted to SHIB and burnt.
This move to automated token burns was expected to boost the burn rate of Shiba Inu tokens, but the results have not met expectations. One possible reason for this could be the insufficient transaction fees generated on the Shibarium network to support daily automated burns.
The activity on Shibarium’s network has seen a decline in recent months, with daily transactions stagnating between 3,000 and 8,000 over the past month. The network’s transaction fees are significantly lower than previous levels, with a peak of 8,630 transactions on August 1. These factors may explain the caution in implementing automated daily burns.
Bearish Trends in On-Chain Metrics
The on-chain metrics for Shiba Inu also point towards a bearish outlook for the cryptocurrency, with a general decline in various aspects. Large transactions involving SHIB have decreased by over 14%, signaling waning interest from major holders.
Additionally, the percentage of Shiba Inu holders in profit has dropped to 45%, indicating that most holders are currently experiencing losses. The net network growth is diminishing, reflecting a lack of new investors entering the Shiba Inu ecosystem.
Presently, Shiba Inu is trading at approximately $0.00001338, showing a decline of nearly 2% in the last 24 hours, based on data from CoinMarketCap.
