Bitrabo Editorial
As the overall bearish sentiment pervades the cryptocurrency market, the impact can be seen on various aspects of meme coins like Shiba Inu. One significant metric affected by this trend is the SHIB burn rate, which has experienced a steep decline amidst these challenging times.
Significant Drop in Shiba Inu Burn Rate
In a surprising development, the burn rate of Shiba Inu has plummeted by 91.94% recently. This sharp decrease, observed over the past 24 hours, highlights the minimal attention given to this metric and the cautious approach adopted by investors during this period.
Shibburn, a platform tracking Shiba Inu burns, reported only 2.367 million SHIB tokens burned in the last day, a stark difference from the 29.5 million burned the day before. This sudden lack of interest may be attributed to Bitcoin’s price dropping below $62,000, affecting overall market sentiment.
For instance, on May 13, Shibburn reported a burn of over 20.2 million tokens, marking a 94.7% increase at that time. Subsequently, 29.5 million tokens were burned on May 14, amounting to a more than 110% rise in the burn rate.
This decline in daily burn rate has also impacted the weekly figures, with only a slight 3.59% increase in the burn rate from the previous week, as per Shibburn’s latest report.
SHIB Investors Holding Firm
A decline in the Shiba Inu burn rate often indicates investors’ decision to retain their tokens, as evidenced by reduced selling activity. Santiment data reveals that SHIB investors have refrained from transferring tokens to exchanges, resulting in a notable decrease in active SHIB deposits.
This reluctance to sell is promising for the meme coin, as it indicates investor commitment to holding onto their tokens rather than liquidating them. A decrease in selling pressure, coupled with rising demand, could potentially lead to price recovery. If this trend continues and the broader crypto market rebounds, Shiba Inu might see a resurgence in its value.