Most cryptocurrencies have started to turn green in terms of their price movement, which has led to Shiba Inu seeing a gain of 2% in the last 24 hours. Despite a slight increase in price, SHIB burn rate has dropped significantly.
According to Shibburn, the official SHIB burn tracker, only 983,884 SHIB tokens were burned in the last 24 hours, representing a drop of over 99% from the previous day. Such a significant reduction in the burn rate is guaranteed to increase investor concerns over the possibility of downward pressure on the SHIB price in the short term.
SHIB burning rate dropped by 98.79%
The primary purpose of burning Shiba Inu is to reduce the amount of SHIB tokens in circulation, thereby promoting scarcity and subsequently increasing the value of SHIB tokens in circulation. SHIB tokens are burned sporadically, with some days having more tokens burned than others. For example, the volume of the first SHIB burn on Shiba Inu’s layer-2 solution Shibarium was 97 million SHIB tokens.
According to the Shiburn website, a total of 983,884 SHIB tokens were burned in three transactions over the past 24 hours, of which a maximum of 42,850 SHIB tokens were transferred to an inactive wallet. This figure represents a 98.79% decrease in the number of tokens burned, which is a significant drop compared to previous days.
To put this in perspective, a total of 81.26 million SHIB tokens were burned yesterday, and over 49.76 million SHIB tokens were burned two days ago.
Shiba Inu Implications for Investors
SHIB tokens can be burned by any investor by sending the tokens to one of three SHIB burn addresses. According to the marketing leadership of the Shiba Inu community, SHIB Burn is a community effort. Data from the Shiburn website shows that more than 410 trillion SHIB tokens have been destroyed from the initial supply.
It seems that this trend of decreasing SHIB burn rates has been going on for some time, as interest seems to be waning due to the burn having no impact on the price. As Shiburn records show, October saw a 37.12% decline in SHIB Burn compared to September. Despite the cryptocurrency’s price rising more than 17% from its October low, burn rate performance slowed throughout the month.
SHIB is currently trading at $0.000008687, up 23.75% over the last 30 days. SHIB’s journey to $1 looks bleak at this point in time, considering there are over 589 trillion SHIB in circulation. SHIB burns will have an important role to play before the cryptocurrency reaches the $1 mark as they will help reduce the total supply.
SHIB price $0.00000868 | Source: SHIBUSD on tradingview.com
Featured image from CoinGecko, chart from tradingview.com