The Shiba Inu (SHIB) burn rate has significantly declined to begin the new week. The drop in the number of Shiba Inu tokens burned continues to be an issue for the meme coin’s ecosystem, and certain factors contribute to this decline.
SHIB’s Burn Rate Declines By 97%
Data from the burn tracking website Shibburn shows that Shiba Inu’s burn rate has declined by over 97% in the last 24 hours, with only 128,791 SHIB tokens burned during this period. These burns occurred in just two transactions, with 100,000 Shiba Inu tokens burned in one transaction and 28,791 burned in the second transaction.
This is in stark contrast to the day before when over 4.5 million SHIB tokens were burned. However, the bigger picture shows that Shiba Inu’s burn rate has been on the decline for a while now. Further data from Shibburn shows that there has been an almost 40% drop in the meme coin’s burn rate in the last seven days.
Meanwhile, SHIB also witnessed a 78.23% drop in the monthly burn rate in May. Over 369 million tokens were burned in May, which was still relatively low compared to how much was burned in April.
This decline has been partly thanks to the layer-2 network Shibarium, which has experienced a significant drop in its daily transactions. The network is known to have contributed significantly to the SHIB burns that were carried out in the past, with over 33.8 billion Shiba Inu tokens burned in December last year, thanks to Shibarium.
However, in recent times, Shibarium has failed to execute SHIB token burns, most likely because the transaction fees earned from these daily transactions aren’t sufficient to consider delegating some to token burns.
Significance Of The Shiba Inu Token Burns
These Shiba Inu token burns significantly impact the meme coin’s price, especially when complemented by increased demand for SHIB. Furthermore, the token burns are critical at a time like this when the bull run is about to kickstart in full force.
Shiba Inu is expected to witness an impressive demand, considering that meme coins are one of the leading narratives in this cycle. Therefore, burning these SHIB tokens on a large could help the meme coin’s price skyrocket to new highs.
Meanwhile, given that SHIB still has a circulating supply of over 589 trillion, these token burns are deemed necessary if the meme coin is ever to reach certain heights. Shiba Inu’s burn tracker has noted that Shiba Inu’s maximum circulating supply has to be pegged at just 134 trillion if the meme coin is to reach $0.01.
At the time of writing, Shiba Inu is trading at around $0.00002472, down over 1% in the last 24 hours, according to data from CoinMarketCap.