Bitrabo Editorial
The website Shibburn dedicated to tracking Shiba Inu token burns has disclosed the amount of SHIB tokens incinerated in September, showing a significant increase from the previous month.
Significant Increase in Shiba Inu Token Burns in September
According to an X post from Shibburn, nearly 2.4 billion Shiba Inu tokens (worth approximately $42,069) were burned in September through 131 transactions. This marks a remarkable 249% rise compared to August’s total of 680 million SHIB tokens. Such a surge is beneficial for the Shiba Inu ecosystem as token burns can positively influence SHIB’s long-term price.
The increased burn rate in September is attributed to a strong performance of the meme coin during that month, which boosted investor confidence. This trend of accumulation by whales fueled the number of burned tokens, as a portion of transaction fees goes towards buybacks and burns. Notably, this uptick in burn activity occurred despite steady daily transactions within the Shibarium ecosystem.
As for October, it remains unclear if the burn rates can surpass those of September. Early indications show a poor start for this month, with Shibburn reporting over a 93% decline in the burn rate over the past week. In the last 24 hours alone, 572,837 SHIB tokens were burned, representing a 78% drop.
This decline in burning activity appears linked to the overall negative sentiment in the cryptocurrency market. The anticipated ‘Uptober’ rally has not materialized, making investors hesitant to purchase more SHIB tokens. However, a bounce back in prices could potentially lead to increased transactions and a rebound in the burn rate for Shiba Inu.
Bearish Trends in On-chain Data
The on-chain data for Shiba Inu also suggests a negative trend. Market intelligence from IntoTheBlock indicates a decrease in the proportion of Shiba Inu holders who are profitable. This is critical, as a substantial drop in price could incite a wave of selling, further pushing prices down.
Additionally, there is a bearish concentration trend, revealing that Shiba Inu whales seem to be reducing their holdings instead of increasing them. The overall growth of new addresses on the network has also plateaued.
Despite these concerning on-chain metrics, it’s important to highlight Shibarium’s recent achievement of surpassing $7 million in total value locked (TVL).
Currently, Shiba Inu is trading at about $0.000016, reflecting an increase of over 1% in the last 24 hours, based on information from CoinMarketCap.