As a seasoned crypto investor with a penchant for meme coins and a soft spot for adorable Shiba Inus, I must admit that the spike in Shiba Inu’s burn rate last September was quite intriguing. It’s like watching my furry little digital friends getting fatter (in terms of value) due to the burning process.
According to Shibburn, a platform that monitors Shiba Inu token burns, more SHIB tokens were destroyed in September than in any other recent month, marking a significant increase in the burning rate.
Shiba Inu Burn Rate Spikes In September
In a recent post on X, it was disclosed that approximately 2.4 billion Shiba Inu tokens, worth around $42,069, were destroyed in September, with 131 individual transactions. This substantial increase in burning marked a rise of 249% compared to the previous month’s burn rate, where 680 million SHIB tokens were removed from circulation. This uptick in token burning is considered beneficial for the Shiba Inu community, as it could potentially drive up the value of SHIB coins over the long term due to the potential impact on supply and demand dynamics.
It’s thought that the surge in Shiba Inu’s monthly burn rate during September could be attributed to the strong momentum the meme currency experienced in August, which likely increased investor trust and encouraged them to acquire more of the meme coin over the course of September.
Over time, large Shiba Inu investors (whales) continued to accumulate tokens, which in turn triggered more SHIB tokens to be destroyed because some transaction fees are designated for buybacks and burns. Remarkably, the Shiba Inu ecosystem surpassed a significant milestone in burning rates even though daily transactions on Shibarium remained consistent throughout September.
It’s uncertain if the Shiba Inu burning pace in October will outdo September’s record, as the current rate hasn’t started strong. Data from Shibburn indicates that the burning pace has fallen by more than 93% over the past week. Moreover, the burning pace has halted in the last day, with approximately 572,837 SHIB tokens burned during this period, marking a decrease of 78%.
It seems that the decrease in Shiba Inu’s token burning rate might be attributed to the prevailing bearish attitude within the overall cryptocurrency market. The anticipated ‘Uptober’ surge hasn’t fully materialized as expected, causing investors to hesitate when it comes to acquiring more tokens such as SHIB. Nevertheless, a general price rebound could potentially trigger increased Shiba Inu transactions and subsequently boost the burning rate.
On-chain Metrics Also Paint A Bearish Picture
As a researcher delving into the world of cryptocurrencies, I’ve been closely observing the on-chain trends of Shiba Inu. The data from market intelligence platform IntoTheBlock has indicated a concerning decrease in the number of Shiba Inu holders who are ‘in the money’. This means that these holders have purchased their coins at prices higher than the current market value.
The level of focus on Shiba Inu suggests a selling trend among large investors, as they appear to be disposing of their holdings rather than buying additional coins. Additionally, the expansion of SHIB‘s network has been slow, with the creation of new wallets daily continuing within a similar range.
Amid these bearish on-chain metrics, it is worth mentioning that Shibarium recently achieved a notable feat: the network’s total value locked (TVL) surged past $7 million.
Currently, as I’m typing, the price of Shiba Inu stands roughly at $0.000016. It has seen a growth of more than 1% within the past 24 hours, based on information from CoinMarketCap.
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- BICO PREDICTION. BICO cryptocurrency
- USD PHP PREDICTION
- USD ZAR PREDICTION
- USD COP PREDICTION
- USD CLP PREDICTION
- SOL PREDICTION. SOL cryptocurrency
- XPRT PREDICTION. XPRT cryptocurrency
- RTM PREDICTION. RTM cryptocurrency
2024-10-05 00:11