Bitrabo Editorial
The Shiba Inu (SHIB) burn rate has dropped at the beginning of the week. The decrease in the burning of Shiba Inu tokens remains a concern for the coin’s ecosystem, influenced by various factors.
SHIB’s Burn Rate Plunges By 97%
Recent data from the burn tracking site shows that Shiba Inu’s burn rate has fallen by more than 97% in the last 24 hours. Only 128,791 SHIB tokens were burned in two transactions during this period. This is a sharp decline from the previous day when over 4.5 million SHIB tokens were burned. The overall trend shows a continuous decrease in the burn rate over time.
Additionally, there has been a significant drop in the meme coin’s burn rate over the past week, with a nearly 40% reduction. In May, SHIB experienced a 78.23% decrease in the monthly burn rate compared to April.
The decline can be attributed partly to Shibarium, a layer-2 network that has seen a decline in its daily transactions. The network previously played a crucial role in SHIB burns, burning over 33.8 billion tokens in December last year. However, Shibarium has not been actively burning SHIB tokens recently due to inadequate transaction fees earned from daily transactions.
Importance of Shiba Inu Token Burns
SHIB token burns have a substantial impact on the coin’s price, especially when coupled with increased demand for SHIB. These burns are crucial as the cryptocurrency market is gearing up for a bullish trend. Greater token burns could potentially propel SHIB to new price highs.
To reach significant levels, such burns are deemed essential given SHIB’s current circulating supply of over 589 trillion. Shiba Inu’s burn tracker indicates that if the coin is to reach $0.01, the maximum circulating supply must be limited to 134 trillion.
Currently, Shiba Inu is trading at approximately $0.00002472, showing a decrease of over 1% in the last 24 hours according to CoinMarketCap data.