SHIB Burns Plunge on All Time Frames, What’s Happening?

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As a seasoned researcher with a knack for deciphering the intricacies of the cryptocurrency market, I find myself both puzzled and amused by the latest developments surrounding Shiba Inu (SHIB). On one hand, we have a substantial increase in SHIB price, which is undeniably exciting. However, on the other hand, the rate of SHIB burn transactions has plummeted significantly over the past week – a trend that usually coincides with increased price action.

The Shibburn token tracker, responsible for keeping tabs on burning transactions related to Shiba Inu, the second most popular meme cryptocurrency, has revealed that a significant metric – burn transactions – has displayed unfavorable results not only on a daily basis but also over the past week as a whole.

Currently, the Shiba Inu (SHIB) price is displaying a reversal trend, surging significantly by approximately 13.3% in the last few days, with a noteworthy increase also observed over the past 24 hours. This positive momentum started on Thursday.

SHIB burns deep in red

As an analyst, I’ve just noticed some interesting data about Shiba Inu (SHIB) from the latest tweet by Shibburn. Over the past 24 hours, there’s been a decrease of approximately 42.39% in the burn rate, with a total of 2,600,481 SHIB meme coins being transferred to unspendable blockchain wallets. This means they’ve essentially been removed from circulation.

On the site, it’s indicated that a total of six burn transactions have taken place since this morning, with the two largest ones transferring approximately 1.14 million and 1 million SHIB tokens to inactive wallets.

On Friday, slightly more than 4,000,000 SHIB were scorched and locked in “inferno” wallets.

1-hour Shiba Inu (SHIB) Update:— Shibburn (@shibburn) October 5, 2024

Regarding the weekly burns, the tweet indicates that over the last seven days, the burn rate has significantly dropped approximately 100%. This reduction equates to 26,638,951 SHIB tokens that were burned, which is 98.68% less than the amount burned a week earlier.

Shibarium daily transactions drop

As a crypto investor, I’ve been closely monitoring the link between Shiba Inu burns and transaction activity on the relatively new Layer-2 blockchain, Shibarium, which was launched in late August last year. However, the daily transactions on Shibarium are still quite low compared to other platforms, with around 4,550 as of October 4th.

Yesterday’s on-chain transfers saw a significant jump by approximately 19%, reaching 4,580 from the previous day’s 3,800. On October 2nd, this figure was significantly higher at 7,500 transactions. The highest point was on September 27th, where daily transactions spiked to a peak of 11,230.

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2024-10-05 23:14