As an analyst with over two decades of experience in the crypto market, I have seen my fair share of spikes and drops. The recent 1,088% increase in the Shiba Inu burn rate is indeed intriguing, but it’s not exactly a cause for celebration.
In the past 24 hours, there’s been a significant increase in the rate at which Shiba Inu coins are being destroyed, a trend that might signal a shift in the burning process. Yet, despite this substantial surge, the number of coins burned still doesn’t present an overly optimistic outlook. This analysis delves into the recent Shiba Inu burns, explaining why even this major increase in the burn rate isn’t something to be overly enthusiastic about.
Shiba Inu Burn Rate Jumps 1,088.66%
Information from the Shiba Inu burn monitoring site Shibburn indicates that the rate at which SHIB tokens are being destroyed has risen once more. Notably, there’s been an impressive 1,088% surge in the burn rate within the last 24 hours, primarily due to a large transaction occurring during this period.
Unlike the significant rise in the number of SHIB tokens being destroyed (or “burned”), there’s been a lot of difficulty in reducing the overall supply of the meme coin. The transaction responsible for the surge in the burn rate involved 98,136 SHIB, making it the only such transaction recorded in a single day. In other words, during that specific 24-hour period, only 98,136 SHIB tokens were burned.
From my research perspective, at the present Shiba Inu price of $0.00001373, it signifies that merely $1.34 worth of SHIB tokens were incinerated in the last 24 hours. However, what’s more disheartening is the substantial shift in the burn rate, which has taken a steep downward trajectory over the past week, as evidenced by the significant surge caused by a single transaction.
Initially, the previous burn transaction occurred three days before this one, and interestingly, just three transactions were made on that particular day. On a larger timeframe, examining an entire week, a total of only 22 burn transactions took place for Shiba Inu within the last seven days.
22 recent SHIB transactions resulted in a total of 8,540,000 tokens being destroyed. Considering the current SHIB value, this amounts to approximately $119.6 worth of burned tokens over a period of seven days. This represents a significant decrease of 94.4% compared to the burning rate from the previous week.
What’s Happening With The Burn?
Concerning the Shiba Inu token, it’s troubling to see a significant slowdown in its burn rate compared to the swift pace earlier this year. Just last week, Bitcoinist highlighted that the daily burn rate for SHIB plummeted by 100%, suggesting no burns were executed on that day.
To maintain a steady reduction in supply, as previously announced in August, the Shiba Inu team introduced automated SHIB token burns on their Layer 2 network, Shibarium. However, this development has failed to excite the community due to the underperformance of the Shibarium network. At present, it ranks as the poorest performing Ethereum Layer 2 network, and since no fees are being generated, the automated burns have essentially stopped working.
In the current scenario, the Shiba Inu community is making another move to decrease the number of its meme-based coin in circulation. They’ve initiated a petition asking the Binance exchange to incinerate SHIB tokens much like it does with LUNC tokens. Regrettably, this petition hasn’t managed to grab Binance’s attention yet, as it has garnered merely around 1,383 signatures so far.
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2024-08-22 12:41